How to create new interest types
Prior to issuing an interest, an interest type must first be created.
Navigate to Cap table > Interests and interest types.
Click Add interest type +.
Select the Interest Type and click Next.
Enter an Interest type name and prefix. If applicable, set the Authorized units and complete the corresponding fields. Click Next.
Select the applicable Interest behaviors and click Next when finished. The Interest behaviors selected will reflect the key economic information regarding the new interest type.
Input | Description |
Vesting | Indicates whether these interests are subject to time-based or performance-based vesting. |
Original issue price | Tracks the issue price of these interests. When turned on, the price must be specified during issuance. |
Invested capital | Records each interest holder's invested capital when interests of this type are issued. Required for use with capital accounts. |
Appreciation rights | Primarily used for Profits Interests or Phantom Equity Appreciation Rights. Reflects ownership in value appreciation beyond a set threshold. |
Appreciation rights | Primarily used for Profits Interests or Phantom Equity Appreciation Rights. Reflects ownership in value appreciation beyond a set threshold. |
Repurchase | When turned on, it allows the repurchase of these interests. |
Exercisable | When turned on, it allows these interests to be exercised for a strike price. |
83(b) Elections | If turned on, Carta generates an 83(b) form upon issuance and provides reporting on the status of the 83(b) Elections. |
Within the Acceptance agreements page, click + Add documents to include documents that are related to all interests of the new type. Though optional, uploading a document here will attach it by default to all new interests issued of this type.
Scroll down to preview the acceptance text and workflow for interest holders. Type the name displayed beneath the signature line and click Next.
On the Estimated value page, click into the dropdown to the right of Outstanding Value to select who will be able to view the estimates.
Optionally, create custom fields to be used when a new interest is issued under the given type (e.g., Notes). Click the + button to the right of the row, enter details, and click Next to proceed to the final step.
Review the details and click Save to create the new interest type. If needed, click Back on the bottom left to make any edits before saving.