Carta

Executive Summary

Carta is preparing for a late 2026 IPO, targeting a substantial $8 billion valuation despite reporting a net loss of $25 million on $380 million in revenue. The company is currently under SEC investigation regarding its valuation practices, adding a significant regulatory concern. Furthermore, Carta faces multiple lawsuits from former employees alleging discrimination and retaliation. Its business model's reliance on the venture capital market poses a market risk as the sector experiences a slowdown. Increasing competition from other cap table management platforms also presents a challenge to its market share. Investors should carefully consider these headwinds as Carta navigates its path toward its public offering.