Posted 1/9/2024, 6:43:00 PM
Carta Shuts Down Secondary Trading Business After Data Misuse and Discrimination Controversies
- Carta shuts down its secondary trading business Carta X after backlash over misusing customer data
- CEO Henry Ward admitted Carta's access to sensitive data made it impossible to operate secondary market without impropriety
- Ward had envisioned Carta as the "Nasdaq for private markets" but Carta X only brought in $3M annually
- Shut down comes amid legal battles with former employees and discrimination allegations
- Loss of secondary business unclear how Carta will justify multi-billion dollar valuation without new revenue streams