Frequently asked questions about SOI updates

You can currently make three types of updates to your Statement of Investments (SOI):

1. Markup/Markdown – When the price per share of your investment changes due to valuation adjustments.

2. Realization – When an investment exits and distributions are paid out (e.g., IPO, merger, acquisition, or recapitalization).

3. Conversion – When a convertible asset (e.g., a SAFE or Convertible Note) is exchanged for another type of asset, usually at a predetermined price (e.g., converting preferred stock into common stock).

A markup may occur when:

• A new funding round is raised at a higher valuation than your initial investment.

• A 409A valuation by an independent appraiser results in a higher valuation.

• The company experiences an exit event at a higher valuation than your initial investment.

A markdown may occur when:

• A new funding round is raised at a lower valuation than your initial investment.

• The company reports significant financial losses, impacting its valuation.

• A 409A valuation results in a lower valuation.

• The company is no longer operating.

For SAFEs and Convertible Notes, please contact your Fund Administrator to ensure the conversion is booked correctly. Your Fund Administrator will record the conversion and adjust the price per share as needed.

A write-off is a realization, as it involves reducing the investment value to zero. Please reach out to your Fund Administrator with supporting documents, such as dissolution notices or official communication from company leadership.

• For audited funds:

  • Articles of incorporation (detailing liquidation preferences, series pricing, etc.)

  • Stock purchase agreements (SPA)

• For non-audited funds:

  • The SPA is strongly recommended.

  • In some cases, a written notice from the founder outlining the new valuation may suffice.

For mergers and acquisitions, please contact your Fund Administrator and provide supporting documentation.

Once you submit a request and the appropriate documentation:

1. Your Fund Administrator will review and verify the details.

2. After approval, portfolio updates and associated metrics will be reflected in your dashboard.

Carta supports automatic valuation updates for public equity and crypto assets.

• We use your asset’s identifiers (Symbol, ISIN, CUSIP) to fetch market closing prices.

• When a price update is detected, we automatically update the asset valuation and record the necessary journal entries.

We integrate with the following market data sources:

• Xignite

• Xpressfeed

• Twelve Data

• CoinMarketCap

The auto-valuation process runs according to your fund’s valuation cadence (daily, monthly, quarterly, or annually).

Carta has a dedicated Deal Documents team that reviews and catalogs all supporting documents for valuation changes to ensure accuracy and compliance.

If you made an update in error, please contact your Fund Administrator as soon as possible to correct it.

If the price per share appears different than expected, please contact your Fund Administrator for further clarification.