Carta's Controversies: Navigating the Aftermath

Carta, a cap table management startup, faced a PR nightmare after a sales employee used confidential data from a customer to craft a sales pitch for a secondary stock sale, leading to a shutdown of that business. Despite the breach, the company's annual recurring revenue was $373 million, with only $3 million from secondary sales, and its last primary round was raised in 2021 at a $7.4 billion valuation. While its current valuation is estimated to be about half of its last primary round, the company's growth over the last few years has been promising, even without the secondary markets business.