Financing History

Navigate to the ‘Financing history’ page under the ‘Capitalization’ tab. On the Financing History page, information is displayed by financing rounds for your company. This adjustment is reflected in the company’s post-money valuation, which is also referred to as the result of the new equity received during funding.

  • The closing date is the date of the last certificate issuance of that round.
  • Fully diluted shares are the total number of shares outstanding, including convertibles and options. This share count is the total of all outstanding common and preferred shares that would exist if convertible notes converted to common stock.  
  • The share class price per share is entered by the company for each round. For more information on editing share class prices, click here.
  • The pre-money valuation equals the post-money valuation less cash raised (pre money = post money - cash raised).
  • Cash raised refers to the amount of money that was contributed by all investors to the round.
  • The post-money valuation is calculated using the number of fully diluted shares and the share class price per share of that round.

Hovering over an individual bar displays detailed information about the associated round.

The ‘Cash raised’ tab displays information about the amount of funds raised in each round of financing. Each investment is associated with a stakeholder (investor), security label, issue date, cash paid, and number of shares.

The stakeholders can be sorted by the round of investment using filters.

The transaction value defaults to cash paid. However, if you believe the amount may be incorrect, you can edit the individual stakeholder securities by clicking on the ‘v’ button and selecting 'edit' associated with the security.

Here, you will be able to modify the transaction. Edit the amount paid for the security under ‘Cash paid.’

The ‘Debt canceled’ field is used for convertible securities (e.g. convertible notes, SAFES) and should reflect the total value of principal and interest being converted into shares. The ‘Value of IP transferred’ is equal to the cash value of the technology or intellectual property exchanged for the shares. If any other value was exchanged for the shares apart from cash, debt cancelled, or IP transferred, this can be entered under ‘Other consideration.’

If there is a discrepancy between the company's actual funds raised and the number on Carta. The most likely scenario is that a convertible was converted into shares and was accounted for as cash paid rather than debt cancelled.

Every scenario is specific, but in general to fix this, make sure the amount of the convertible is in the convertible and then update the amount of the share in the ‘Debt canceled’ section when editing the security. 

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