As startups have been private for longer and liquidity has become harder for early employees and investors, more and more shareholders are looking for ways to offload their shares onto others. All back in 2011, Companies such as Secondarymarket were looking at nine-share value shares on their secondary share platforms.
This wave of liquidity startups ran into two problems: one was regulatory, and the other was the company’s lack of information about CAP tables and the company’s current financial picture. Stock buyers were essentially blind when buying into companies, which some investors were willing to do, but that blindness limited market demand to secondary levels.
Carta It is hoping that its base as a cap table management solution of choice for many startups will allow it to parlay into a new service in that case. Cartax. We heard the rumble About service for over a year, But According to a new blog post by founder Henry Ward, It seems that the product is moving out of beta and is starting to operate in the real world with real money.
Yesterday, Carta sold its $ 100 million share in 1,144 market orders for $ 4 billion through its own Cartacax product of $ 6.9 billion. Ward says the company has been above the $ 3.1 billion valuation of the Series F round since last year.
As a comparison, secondary transactions typically involve secondary buyers who perform these deals manually with individual sellers one-on-one. What makes Cartex interesting is that companies based on the same type of computerized trading model can allow for much faster and more frequent secondary sales that currently power the stock market.
Liquidity is a very big issue for startups, and while CartaX is just getting going, it meets an important need for many participants in the startup ecosystem, and is an important financial product to look forward to in 2021 spreads out.
Meanwhile, revenue in Carta is looking good these days. According to an article earlier today by Zoë Bernard and Corey Weinberg on information, Carta’s ARR is $ 150 million. If all the numbers are correct, it is a revenue multiple of 46x, which is good these days if it is not great for SaaS companies to approach public markets.