Carta Exits Secondary Trading Business Amid Data Misuse Scandal

The software company faces backlash after accusations of using confidential customer data, leading to a halt in sales and a potential shift in the market.

Carta, a cap table management and software company, has been accused of using customers’ confidential data to bolster its own business, leading to a halt in its sales outreach and a decision to exit the secondary trading business.
Legal ramifications of the situation are unclear, but the scandal has damaged Carta's customer relations, with some customers reconsidering their relationship with the company.
Carta has previously faced allegations of harassment, retaliation, and gender discrimination from former employees.
The recent scandal could mark a turning point for Carta, which is backed by Andreessen Horowitz, Lightspeed Venture Partners, and Spark Capital.
Carta's competitors have seen a surge in sign-ups following the news, indicating a potential shift in the market.