Technology
Carty’s failed resale business finally finds a buyer
Stock Trading Startup Public As confirmed by TechCrunch, the corporate has taken over the brokerage accounts of Carta’s real estate division.
Carta, best known for its cap table management software, relies on data-driven stocks. It had been attempting to expand into the bubbling, red-hot secondary brokerage market, but in January a startup client publicly accused Carta of using the startup’s private cap table data to contact its shareholders to broker a sale without the startup’s knowledge. The accusation went viral and scared many Carta customers, who threatened to depart.
A number of days later, Carta announced that it was abandoning the business. Now it has found a willing buyer in Public, Axios reported this earlier.
In an emailed statement to TC, Public said Carta Capital Markets clients it acquired have the suitable to opt out. In the meantime, Carta says it isn’t completely out of the secondary business. It will proceed to supply services through “firm-directed secondary offerings, such as tender offers,” through its SEC-registered transfer agent, it said.