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Writer's pictureRISHI KORDE

The CEO of Carta states that the startup is looking into an email regarding the sale of shares.




The dispute arose on Friday when Karri Saarinen, CEO of software startup Linear Orbit Inc. and a Carta customer, lodged a complaint that Carta had utilized its knowledge of Linear Orbit's investors to reach out to one of them through email, proposing the sale of Linear shares on the secondary market.

In response to customer allegations, the CEO of Carta Inc. stated that the startup is currently investigating the matter, while also accusing the customer of advocating for the downfall of the financial software company.

Karri Saarinen expressed concern on X, stating, "This might be the end of cartainc as the trusted platform for startups."

In a Medium post, Carta acknowledged the issue, which affected two additional customers, as an "internal breach of protocol." CEO Henry Ward affirmed the unacceptability of the violation, stating that they addressed it on Saturday morning and are actively investigating to prevent a recurrence.

In a more impassioned exchange on X, Ward accused Saarinen of seeking the demise of Carta, which, he claimed, would result in the loss of 2,000 jobs and affect 40,000 customers. Carta, valued at $7.4 billion, has garnered over $1 billion in investments from firms such as Andreessen Horowitz and Menlo Ventures, according to PitchBook data.

Despite operating in the typically uneventful realm of enterprise software, Carta has faced its share of controversy. In the previous year, the company underwent layoffs and pursued legal action against a former executive. In 2020, another former executive sued Carta, alleging gender-based pay disparities.


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