Idea Details

 

In-app calculation for equity pool runway

Last activity 06-05-2024 12:08
Christopher Hoffmann's profile image
By: Christopher Hoffmann
11-06-2022 04:44

This is something I've created a VERY simplified version of in excel, and all the input is completely manual, but I love the idea and think it would be cool to automate with data from Total Comp and the Equity Management products:

Something that is incredibly important, but often forgotten (until absolutely necessary) is the 'equity pool runway' (as far as I know I created this term, but have not trademarked it...yet, haha). Finance teams are often working with their company's hiring forecast to determine if they need more shares added to their equity incentive plan/pool. With the data from Carta Total Comp, it would be sooo cool to automate this runway calculation and allow companies to see an estimated range of how long their equity pool will last, based on the positions they forecast to hire.


Comments

Official Response
11-08-2022 14:43
What a great idea! Thanks for sharing, Chris. I've passed this along to our Product team for consideration.

02-17-2023 13:01

Yes! I have been building this in excel for my past two companies. Would love this to be productized in Carta.

Current outstanding options
+ New Hire grants
+ Refresh/Tenure grants (based on some criteria & logic)
+ Promotion grants (estimated based on some criteria & logic)
+ Performance grants (estimated based on some criteria & logic)

I got a lot of my inspiration for this from here:
Carta’s equity refresh program