– “Carta to Shift Focus: Prioritizing Trust by Exiting Secondaries Business”

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The big idea was to become the transfer agent, brokerage and clearinghouse for all private stock transactions in the world. While the move made Carta more valuable in the eyes of its venture backers — a company has to scale after all! In his post tonight, Ward downplayed the impacts of ending secondary trading on Carta, saying the revenue derived from the practice is minuscule compared with Carta’s other business offerings. Striking a humble tone, Ward wrote that “ALL of my ideas around liquidity — auctions, investor matching, secondary trading, open tender offers, have not worked. Many people think we are best poised to solve liquidity because we have cap table data.

Some Secondary Investors Claim that Certain Valuations Remain Excessively High

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Startup valuations — especially at the later stages — have come down drastically over the last year and a half of the ongoing market correction. Companies that once boasted sky-high valuations like Klarna and Getir have seen their valuations slashed in their latest funding rounds. Outside of Klarna and Getir, though, very few late-stage companies have raised new primary rounds since the booming 2021 market. This is a noticeable haircut from the $25 billion valuation it garnered in 2021. A recent survey of venture secondaries investors found that for those who focus on the industry, many think prices may still have room to drop.