Starting a startup can prove pricey, with a multitude of subscription services needed to get operations running smoothly. A cap desk administration software program, for instance, which assists founders in setting up their funding, can cost hundreds of dollars per year alone.
Carta, a San Francisco-based company, holds the top spot in its industry. Some startup founders claim that Carta’s cancellation process is excessively arduous, leading them to reconsider their subscription status.
The issue initially emerged on X following a complaint from Sudarshan Sridharan, the founder of Pipeline, who was frustrated with the difficulties he faced while attempting to cancel his subscription, remarking, “I’m left speechless by @cartainc’s anti-founder stance.” Customers are unable to effectively terminate their membership or interact with a live customer support representative.
According to Carta, a cancellation request meeting was arranged with a buyer success supervisor for him to conclude his subscription. Although slots had been exclusively available since December 26th, well before his December 17th renewal deadline, the founder announced publicly:
Adam Ryan, CEO of startup WorkWeek, notes that one key advantage is the ability to efficiently initiate and manage cancellation requests prior to his renewal date, ensuring seamless transitions.
When testing a field to cancel, a calendar unexpectedly appears. The outside date is the 26th of December. According to Ryan, our renewal date is December 17th. I barely managed to complete the process. I immediately contacted American Express and notified them that the transaction was unauthorized, providing supporting evidence in the form of screenshots to facilitate their prompt denial of the merchant’s claim.
Carta told TechCrunch that the cancelled meeting was caused by a “one-time staffing issue.”
“A temporary staffing issue has led to a scheduling concern that is currently being resolved,” a Carta representative stated. “Clients seeking assistance during this period are invited to connect with our dedicated Support Team via live chat or phone throughout extended business hours.”
While some of Carta’s competitors claim they haven’t had to cancel services like the company has, several informed TechCrunch otherwise.
According to AngelList’s Founder and Merchandise Lead Sumukh Sridhara, clients can easily cancel their subscription at any time within the software program by simply clicking a few buttons or by sending an email directly to the company. There’s no justifiable reason for a cap desk vendor to insist that you sign your name.
Pulleys, another competitor, also cited this same consideration.
“At Pulley, we have a straightforward cancellation process that makes it easy to manage.” Can clients cancel their subscriptions by sending an email to assist@pulley.com? Alison Gonzalez, VP of Marketing at Pulley, emphasized that there’s no need to schedule an appointment or attend a traditional meeting to initiate cancellation. “Upon receiving the email request, our team processes cancellations promptly, ensuring customers can terminate their contracts before renewal dates.”
The sheer frequency of required conferences poses a significant risk of staffing shortages, thereby prolonging the time frame for a founder to effectuate cancellation. That’s a fleeting thought that vanishes into thin air. Despite being announced by founders, these appointments appear to be scheduled exactly 17 days from now, set for this month alone.
A notification shared exclusively with TechCrunch highlights a peculiar scheduling decision for a renewal pricing meeting: it will take place at 6:00 AM on December 27th, the day following Christmas.
Carta’s appointment system is designed to ensure seamless understanding and knowledge migration among its clients by streamlining the process.
“We offer transparent appointment scheduling to ensure our clients grasp the cancellation process clearly, providing best practices to minimize the impact on their shareholders and traders, and paving the way for a safe and seamless transfer of securities data – a crucial step as clients lose platform access once they no longer contract with Carta for companies.”
Some clients may potentially seek a more standardized approach. We welcome input and are always receptive to considering thoughtful ideas for future development.
As Carta notes, its fairness administration approach differs significantly from that of a traditional SaaS company, requiring “completely unique” steps to accommodate the distinct needs of its clients.
However, as Pulley does not utilize cancellation appointments, it is capable of serving as a standalone Securities Exchange Commission (SEC) switch agent for its own website.
Despite this, many founders continue to opt for Carta, driven in part by the overwhelmingly positive feedback they’ve received about the company’s product from enthusiastic users.
We attempted to downscale costs by transitioning from Carta to Diligent, but the outcome was disastrous. Can’t bring myself to switch back to Carta; I’m firmly settled here. “It’s an astonishing 100-fold increase,” remarks Invoice Smith, the visionary founder of Touchdown.
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Katie Jacobs Stanton, a small investor in Carta and an active user of its software, was perplexed when she encountered an issue. They’ve shown a genuine willingness to work with our teams and treat us with respect.
Carta’s practices have faced criticism in the past. In January 2024, Linear’s founder, Karri Saarinen, accused Carta of sharing confidential information about its cap table, alleging that a Carta employee reached out to one of his angel investors without his prior notification or consent, posing as an intermediary with a proposal for his shares. Carta has emerged as a leading secondary marketplace for buying and selling inventory, having successfully launched in August and established itself alongside industry newcomer Public.
