Carta: Powering Modern Equity and Private Capital Management

Carta is an end-to-end platform that helps companies manage equity, ownership, fundraising, and private capital operations with clarity and control. Instead of relying on spreadsheets or disconnected legal documents, businesses use Carta to centralize cap tables, issue equity, run valuations, and communicate with investors in one secure system. As companies grow and ownership structures become more complex, Carta provides the infrastructure needed to stay compliant, organized, and investor-ready.

What Is Carta?

Carta is an equity management and private capital platform used by startups, private companies, and investors to track ownership and manage capital events. It allows companies to maintain accurate cap tables, issue stock options and shares, conduct valuations, and manage investor reporting. By digitizing equity administration, Carta reduces the risk of errors and improves transparency across stakeholders.

In private companies, equity represents absolute ownership—whether in the form of founder shares, employee stock options, SAFEs, or preferred shares issued during funding rounds. Managing that ownership manually can quickly become complicated. Carta provides a centralized system that records and updates equity changes in real time, ensuring accuracy as companies scale.

What Is Equity and Why Structured Management Matters

Equity refers to ownership in a company. Founders receive equity when they create a business. Investors receive equity when they provide capital. Employees may receive equity in the form of stock options or restricted stock units as part of compensation packages.

As businesses raise funding rounds, issue new shares, or expand option pools, ownership percentages shift. These changes affect dilution, control, and long-term financial outcomes. Without structured systems, tracking these changes accurately becomes difficult. Spreadsheets may work in the earliest stages of a company, but they introduce risk as complexity increases.

Errors in equity management can lead to compliance issues, investor disputes, and administrative headaches during fundraising or audits. A platform like Carta ensures that every issuance, transfer, or conversion is recorded correctly, protecting both the company and its stakeholders.

Core Capabilities of Carta Capital Management Software

Carta connects equity, ownership, and private capital workflows into one cohesive system. As companies grow, equity events become more frequent and more complex. Carta centralizes these responsibilities on a secure platform that reduces risk, improves transparency, and ensures compliance for all stakeholders. The following capabilities make Carta a foundational tool for modern private companies.

• Cap Table Management – Carta provides real-time cap table visibility that updates automatically as ownership changes occur. Founders and finance teams can see accurate ownership percentages, dilution scenarios, and share classes without manually recalculating spreadsheets. This clarity is especially critical during fundraising, acquisitions, or board reporting.

• Equity Issuance and Administration – Carta streamlines the issuance of stock options, restricted stock, and other equity instruments. Companies can manage vesting schedules, grant approvals, and equity documentation in a structured workflow. This reduces administrative errors and provides employees with clear visibility into their ownership stakes.

• 409A Valuations and Compliance – Private companies must conduct 409A valuations to determine the fair market value of common stock for option pricing. Carta supports this process, helping businesses remain compliant with IRS requirements and audit standards. Having structured valuation documentation strengthens investor confidence and reduces regulatory risk.

• Fundraising and Investor Reporting – During funding rounds, companies need accurate ownership modeling and organized documentation. Carta supports capital raises by maintaining clean cap tables, modeling dilution scenarios, and providing secure investor access to reports. This improves transparency and professionalism during investor conversations.

• Employee Equity Management – Carta offers employee dashboards where team members can view their equity grants, track vesting progress, and understand ownership value. This transparency supports recruiting, retention, and overall trust within the organization.

• Liquidity and Secondary Transactions – As companies mature, secondary transactions or liquidity events may occur. Carta provides structured oversight for these events, helping companies manage transfers responsibly while maintaining compliance and accurate ownership records.

• Governance and Audit Readiness – Carta centralizes equity records and documentation, ensuring companies are prepared for audits, due diligence, or acquisitions. Organized, accurate records reduce friction during legal and financial reviews.

Why Companies Choose Carta Over Manual Systems

While spreadsheets may seem sufficient in the early days of a startup, they quickly become inadequate as companies grow. Manual tracking introduces the possibility of version conflicts, formula errors, and outdated ownership records. When equity events become more frequent, these risks increase.

Carta reduces these risks by providing automation, structured workflows, and centralized visibility. Companies benefit from improved compliance, more transparent investor communication, and reduced administrative burden. Instead of reacting to equity challenges, teams operate with proactive control and confidence.

Use Carta With Help From TelPlus Communications

Managing equity and private capital requires precision and expertise. Carta provides the platform, but proper setup and implementation ensure companies receive the full benefit of its capabilities. TelPlus Communications can help your business evaluate your needs, configure Carta properly, and guide onboarding so your equity management system supports long-term growth.

Contact TelPlus Communications today to learn how Carta can streamline equity administration and connect your private capital workflows with clarity and confidence.