A Better Offer Letter

At Carta we spend a lot of time thinking about how to better educate employees on startup equity. Even new hires at Carta often don’t understand the equity compensation component of their offer letter. So we decided to create a new offer letter.

I have included highlights of our offer letter with captions below. We are making available a full example of our offer letter, that you can find here. I have also included some highlights below with captions. I hope this will encourage transparency in more companies and help candidates who are currently interviewing at startups. All numbers are accurate for Carta as of 5/18/17.

carta offer letter cover page

Cover Page

better offer letter 2

Welcome letter

better offer letter 3

Summary of offer

better offer letter 4 Simplified graph of our capital structure and breakpoints

better offer letter 5 Formula for calculating option payouts for exit values greater than $77M

better offer letter 6 Tranche-by-tranche table of employee’s vesting schedule

better offer letter 7 Brief advice on how we encourage employees to think about their equity

better offer letter 8 Overview of benefits

better offer letter 9 Home office address and weekly commute schedule (only for California offices)

better offer letter 10 Introduction to first week’s schedule and 1-on-1s

better offer letter 11 Required legal language regarding option details and pending board approval

better offer letter 12 Signature page




Henry Ward

Henry Ward

Henry is the ceo of Carta.