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Cap table management tool Carta valued at $800M with new funding

Posted by on Dec 27, 2018 in arjun sethi, Brex, coinbase, Finance, funding, Henry Ward, JONATHAN HSU, menlo ventures, Spark Capital, Startups, Tribe Capital, Union Square Ventures, Venture Capital, Wealthfront | 0 comments

Startups supporting startups are blazing a new trail with support from venture capitalists.

Co-working spaces like The Wing and The Riveter raked in funding rounds this year, as did Brex, the provider of a corporate card built specifically for startups. Now Carta, which helps companies manage their cap tables, valuations, portfolio investments and equity plans, has announced an $80 million Series D at a valuation of $800 million. The company, formerly known as eShares, raised the capital from lead investors Meritech and Tribe Capital, with support from existing investors.

The round brings Carta’s total funding to $147.8 million. Its existing investors include Spark Capital, Menlo Ventures, Union Square Ventures and Social Capital, though the latter didn’t participate in the Series D funding. Tribe Capital, however, is a new venture capital firm launched by Arjun Sethi, who previously led Social Capital’s investment in Carta, Jonathan Hsu and Ted Maidenberg, a trio of former Social Capital partners who exited the VC firm amid its transition from a traditional VC fund to a technology holding company. Tribe is said to be in the process of raising its own $200 million debut fund.

Founded in 2012 by Henry Ward (pictured), the Palo Alto-based company plans to use the latest investment to develop their transfer agent and equity administration products and services to better support startups transitioning into public companies. It also will launch additional products for investors to collect data from their portfolio companies and to manage their back office.

“We’ve come this far by changing how ownership management works for private companies—popularizing electronic securities and cap table software, combined with audit-ready 409As,” Ward wrote in an announcement. “But our ambitions go far beyond supporting privately-held, venture-backed companies.”

Carta, which counts Robinhood, Slack, Wealthfront, Squarespace, Coinbase and more as customers, currently manages $500 billion in equity. This year, Carta expanded its headcount from 310 employees to 450 employees, launched board management and portfolio insights products and completed a study in partnership with #Angels that highlighted the major equity gap female startup employees are victim to.

The study, released in September, revealed that women own just 9 percent of founder and employee startup equity, despite making up 35 percent of startup equity-holding employees. On top of that, women account for 13 percent of startup founders, but just 6 percent of founder equity — or $0.39 on the dollar.

Source: The Tech Crunch

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Three former Social Capital partners are reportedly raising a $200M fund

Posted by on Sep 4, 2018 in arjun sethi, Chamath Palihapitiya, Collaborative Fund, Facebook, JONATHAN HSU, Mike Ghaffary, social + capital, TC, Tribe Capital, Venture Capital | 0 comments

Tribe Capital, the venture capital firm launched by Arjun Sethi, Jonathan Hsu and Ted Maidenberg, a trio of former Social Capital partners, is reportedly raising $200 million for its first flagship venture capital fund. 

This story is developing. We’ve reached out to the firm for comment.

Tribe was said to be focusing on cryptocurrency and blockchain startups, recently leading the $22.7 million round for crypto trading platform SFOX. Though The Wall Street Journal is reporting today that capital from the fund will be deployed across multiple industries.

The news is a kick in the gut for former Facebook executive Chamath Palihapitiya‘s venture capital firm Social Capital, which has been bleeding partners as of late — so much so that the firm has removed the page on its website that listed its team.

Last week, we highlighted two notable exits in Ashley Mayer, a partner and VP of marketing since 2015, and Mike Ghaffary, a partner since August 2017, who said he was leaving to focus on his angel investing career.

Since then, Axios is reporting Social Capital associate Tejinder Gill has been hired by Collaborative Fund as a principal and that Alex Chee, who headed up product development, is leaving too — whereabouts unknown. It’s quite possible he’s joining Tribe. The firm, after all, is made up of three former Social Capital investors, and the only other person to list Tribe Capital as their employer on LinkedIn is Georgia Kinne, who’s in charge of operations at the firm and was previously an executive assistant at Social Capital.

Other high-level Social Capital employees to head out the door this year include growth equity chief Tony Bates and vice chairman Marc Mezvinsky.

Source: The Tech Crunch

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