carta-waterfall-scenarios

What problem does it solve?

Manually calculating how much each stakeholder (founders, investors, common shareholders) receives during a company exit, sale, or liquidation is complex and error-prone, as it requires accounting for liquidation preferences, share class rights, and varying exit valuations.

Core Features & Use Cases

• Pre-Modeled Waterfall Analysis: Fetches completed Carta exit scenario models to show per-holder payout, cost basis, share count, and return multiples at specific exit values.
• Scenario Comparison: Compares payouts across multiple exit scenarios to highlight how distributions shift as valuation changes, and identifies when common shareholders start seeing returns.
• Notable Flagging: Automatically flags underwater holders (return multiple < 1.0x), large gaps between preferred and common payouts, and scenarios with unexpected distribution shifts. Use case: A founder can quickly see how much they and their seed investors will take home at a $75M exit vs a $150M exit, and whether common shareholders receive any payout at lower valuation levels.

Quick Start

Ask the AI to pull and explain the latest completed waterfall scenario for your company's cap table.