Idea Details

 

Model Fundraising - Waterfall Access

Last activity 06-05-2024 12:08
Ryan Letourneau's profile image
By: Ryan Letourneau
07-26-2022 11:57

As a new founder, I am finalizing my first round of funding. A key part of that round is a mix between equity and convertible notes. We would LOVE to be able to use the Waterfall modeling feature. As founders, we have lost a significant amount of time playing with excel models to be sure we have the term sheet correctly modeled. As we have not closed the round, the $3,500 price tag is too high for this functionality. It is however KEY that we get this valuation right to ensure will grow with incentivized founders and become long-time Carta customers...I would recommend that you make the waterfall functionality free for new accounts up to 30 days, or up to a minimum level of funding. This would create significant stickiness and be SUPER helpful to founders. It would go a long way to seeing Carta as a partner who cares about our long-term partnership and something we would be willing to pay for when it comes time to raise for our next round and have money in the bank.Also, now I've spent a lot of time to build my excel models... Not sure I will need to pay for the Waterfall feature the next time around.


Comments

Official Response
07-28-2022 08:23
@Ryan Letourneau I passed along this feedback to the team and they suggested that Round Modeling may be a good option here. A free version is included in our Launch product. You can learn more about its functionality here. Please reach out if you have any other questions. ​

07-28-2022 10:24

Thanks @Brent Devey - The issue with the feature is that you can only model the next round based on your current capitalization. I need to know what happens to the convertible notes raised in this round when they convert in the round after. I assume this would require the waterfall solution? And if so, still flying blind with Carta when decided if I should accept the notes with the cap proposed.​

07-27-2022 07:51

This is super helpful feedback. Thank you for sharing, Ryan. I'll be sure to pass this along so that it can be considered.