Financing Workflow

This feature is for closing a financing round by sending documents for signature and receiving the funds in your company's bank account. If the round has already closed and you would like to issue the resulting certificates, please see the following articles: to create a share classupdating authorized and issuing certificates individually or in bulk .

1. To get started, navigate to 'Financings' under Transactions.

2. Next, click the green 'Get Started' button and select the type of round you are raising.

3. This will bring you to the financing guide where you will enter and track round details. Click 'Add' to start building the round. 

4. Upload your round documents for all investors to receive. 

The Stock Purchase Agreement is the only required document. All investors will receive these documents, so they should  be form  document not including  investor specific  information. Please  see  this article on how form documents work in Carta for the financing round. You can add any  investor specific  documents as you invite the investors. 

5. Create the new share class.

Add the share class, including the liquidation preferences if applicable. If this is a convertible note round, you will create the note block with the terms of the round.

6. The countersignatory that you selected will now need to login and countersign documents before you can proceed. They login, go to the financing setup guide under Transactions --> Financings and click the 'Countersign' link.

7. You can now "Add and invite investors" by clicking 'Next: Add and invite investors'. 

8. This will bring you to your financings dashboard. Click 'Add investor.'

9. Fill out the information in the “Add investor” modal. This will not invite the investor yet, that is a separate step later.

 Any additional documents added here will only pertain to this investor. If this is a converting note, select the note to convert. This will also create a draft of the security that will be sent out after the round closes. You can see the drafts by going to Securities --> Shares (or Convertibles) and going to the draft section.

10. As you invite investors, they will save on the dashboard and the round information will automatically update. 

11. When you are ready to invite your investors, select the checkboxes to the left of the investors, click the blue “Actions” button and select 'Invite investors' from the drop-down menu. 

Below is a sample of the email your investors will receive. Once investors are invited, they are asked to sign the closing documents. You will need to provide ACH or wire instructions to investors (outside of Carta) for your company's bank account for where the funds should be sent. To see what the investors will see once they click on  'Participate in Financing,' click here

12. Mark funds as paid.

Once investors have signed closing docs and ACH or wired to your company the funds, you can select 'Mark as paid' in the Actions dropdown for that investor.

13. Deposit funds.

Once all documents are signed, you have received all funds and are ready to close the round, you can generate signature pages from the actions dropdown and attach them to the back of each document. You will then upload them back in the setup guide so they will show on the financing record for all investors. Once that is complete, go to the drafts of the certificates (or convertibles), enter the missing required information and issue them out for officer signature. Once officer(s) sign, they will be sent to the investors to accept in their portfolio on Carta. Investors will have a 'financing record' attached to their certificate with the documents, signature and record of funds transferred to your company.