Henry Ward (CEO of Carta) on scaling your company

TL;DR

Carter is a software company that focuses on building new markets and scaling startups. They offer various services, including cap table management, fund administration, and private equity solutions. The company is also developing CarTax, a private stock exchange.

Transcript

and third is they have a very high velocity customer acquisition model because if you are creating an nf1 market with a new business model you have to you have to capture this market quickly before anybody else can otherwise it will fracture forever for you and i'm just going to introduce our host david booth uh a fun fact about david is he in 2017... Read More

Key Insights

• 🔒 Carter operates in multiple business units, including cap table management, fund administration, private equity, and a private stock exchange.
• 👶 The company focuses on creating new markets and offers innovative business models to stand out from competitors.
• 👻 Carter prioritizes high-velocity customer acquisition, allowing them to capture markets quickly.
• 🗯️ The company emphasizes the importance of choosing the right investors and building long-term relationships.
• 🆕 Carter's approach to entering new markets includes making the market N-of-1, innovating business models, and having a high-velocity customer acquisition strategy.
• 🗯️ Building a startup requires a strong vision, recruiting the right executives, and effectively managing the organization's structure as it scales.
• 🛄 Carter aims to provide liquidity to employees and early investors while ensuring the availability of shares for future investors.
• ⚖️ Balancing innovation with regulatory compliance is a challenge for fintech companies like Carter.
• 💦 Carter is actively working on policy changes to democratize access to private investments and expand investor eligibility.

Questions & Answers

Q: How does Carter identify and enter new markets?

Carter looks for markets that don't exist yet and aims to create them. They focus on making the market an N-of-1 (allowing only one winner) through network effects or economies of scale. They also prioritize markets that have high growth potential and can be captured quickly.

Q: How does Carter prioritize building different business units?

Carter uses a checklist to assess potential markets. They consider if the market can become an N-of-1, if there is a unique business model innovation, and if they can acquire customers at a high velocity. They also analyze the timing of entry to determine if waiting would make entering the market easier or harder.

Q: How does Carter handle early employee and investor liquidity?

Carter offers secondary liquidity to employees and early investors. Employees can sell 20% of their vested shares per auction, while former employees can sell 10%. Series Seed and Series A investors can also sell shares. The company aims to provide liquidity while also ensuring the availability of shares for future investors.

Q: How does Carter differentiate itself from competitors in the private securities industry?

Carter focuses on converting traditional services, such as cap table management and fund administration, into software businesses. They automate processes that were previously performed manually, making them more efficient and scalable. Carter also prioritizes customer service and building long-term relationships with companies and investors.

Summary & Key Takeaways

• Carter operates in four business units: corporations, investor fund administration, private equity, and CarTax (private stock exchange).

• The company focuses on creating new markets, offering innovative business models, and acquiring customers at a high velocity.

• Carter provides cap table management, accounting services, and investor management solutions to companies and venture funds.