Carta, Inc.
Business Model Analysis
How Carta Makes Money
Annual Revenue: $442.0M (unaudited)
Carta generates revenue primarily through Cap Table Management, with roughly $442.0M (unaudited) in annual revenue.
Core Growth Engine: Carta grows by selling more products to the firms already on its ledger. The playbook is to take a professional service (409A valuations, fund accounting, legal work), automate it, and tie the output to Carta's system of...
Revenue Model & Pricing
Carta sells annual software subscriptions plus service fees on both sides of the private market. Companies pay for cap table management, equity plan administration, and 409A valuations, with prices rising as stakeholder counts and funding stages grow. Investment firms pay for Fund ERP products: fund administration (software plus dedicated fund accountants), fund tax and K-1s, portfolio valuations, CRM, forecasting, and loan operations for private credit. Since May 2026, Carta Law adds outcome-based legal and compliance work such as NDAs, KYC, investor onboarding, and LP transfers. Sacra estimates that in 2023 cap tables and 409A valuations made up about 67% of ARR, fund administration about 27%, and private equity products about 5%. Carta shut its secondary trading business in January 2024, so brokerage is no longer part of the model.
Core Revenue Streams
Cap table and 409A valuation subscriptions
~67% (2023, Sacra estimate)Annual subscriptions priced by company stage and stakeholder count, plus 409A valuation packages.
Fund administration and Fund ERP
~27% (2023, Sacra estimate)Fees tied to fund size and complexity for accounting, tax, reporting, and related software.
Private equity, private credit, and legal services
~5% (2023, Sacra estimate; growing)Newer PE and private credit products, plus Carta Law from 2026.
Growth Strategy
Carta grows by selling more products to the firms already on its ledger. The playbook is to take a professional service (409A valuations, fund accounting, legal work), automate it, and tie the output to Carta's system of record. Fund ERP bundles fund administration, fund tax, portfolio valuations, data collection, forecasting, and CRM. Acquisitions fill gaps: Tactyc (fund forecasting), Sirvatus (private credit loan operations, October 2025), Accelex (AI data extraction, October 2025), ListAlpha (CRM), and Avantia (legal and compliance, May 2026).
How Carta Makes Money: FAQ
How does Carta generate revenue through its software subscription model?
Carta generates revenue primarily through annual recurring SaaS subscriptions for its cap table management software, tiered pricing based on the number of stakeholders and company valuation, fees for 409A valuation appraisals, fund administration retainers, and enterprise compensation data subscriptions.
What is Carta's tiered pricing model for startup cap table management?
Carta offers tiered subscription plans (Launch, Scale, and Enterprise) ranging from free or low-cost plans for early-stage pre-seed startups to multi-thousand-dollar annual contracts for growth-stage and pre-IPO enterprises with hundreds of employees and investors.
How does Carta monetize Venture Capital Fund Administration services?
Carta charges venture capital fund managers a basis-point fee on assets under management (AUM) or a fixed annual administrative retainer to handle fund accounting, waterfall calculations, capital call notices, LP tax K-1s, and audit support.
What is Carta SPV and how does it generate entity formation fees?
Carta SPV (Special Purpose Vehicle) enables venture investors and angel syndicates to form, manage, and close single-asset investment vehicles online, earning fixed entity setup fees and recurring annual administration fees per SPV.
How does Carta partner with law firms to drive customer acquisition?
Carta partners with top startup law firms (including Wilson Sonsini, Cooley, and Goodwin Procter) by providing legal tools that allow corporate attorneys to issue digital shares and board consents for clients directly within Carta.
What share of Carta revenue comes from each business?
Sacra estimates that in 2023 cap tables and 409A valuations were about 67% of ARR, fund administration about 27%, and private equity products about 5%.
How does Carta make money?
Carta operates a massive SaaS model, charging startups recurring fees to manage their cap tables (who owns what stock). They also generate huge fees from 409A valuations and running massive secondary trading markets for private stock.
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