There are 2 workflows which are being tracked on the law firm side and then transcribed onto Carta.
- Pending Equity grants (options typically) to new hires, top-up equity grants, etc.
- Private equity financing grants (preferred stock, SAFEs, Notes)
We track them independently on the legal side in spreadsheets, pro formas, schedule of investments to preferred stock purchase agreements, etc. Once the money is funded, the financing closes, the board consent is signed, etc. they are then transcribed by the paralegal onto Carta. This causes time lag since the paralegal must enter it, secondary review, and then release. There's also chance of error due to transcribing mistakes, etc.
I know there is a drafts area in Carta, but if there was a way to use that as a pending equity table for equity to be approved at a board meeting, or equity to be issued through an equity financing, and then it could be reviewed prior to closing and basically released right upon the closing of the equity financing, it would reduce time and errors.