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Carta exits secondary trading following credibility hit
Roughly 72 hours after a prominent startup customer complained that Carta was misusing information with which it was entrusted -- scaring many of Carta's
The big idea was to become the transfer agent, brokerage and clearinghouse for all private stock transactions in the world. Wrote Saarinen, project management software company Linear is four years old and a Carta customer: “As a founder it feels kind [of] shitty that Carta, who I trust to manage our cap table, is now doing cold outreach to our angel investors about selling Linear shares to their non disclosed buyers.” Continued Saarinen, “They never contacted us (their customer) about starting an order book for Linear shares. While Ward apologized publicly to Saarinen, blaming a rogue employee who “violated our internal procedures and went out of bounds reaching out to customers they shouldn’t have,” Saarinen continued the discussion very publicly, saying he had identified numerous other founders whose investors had also been contacted by Carta representatives without their knowledge.
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