70% of EquityList migrations are from Carta

Carta positions itself as an SEC-Registered Transfer Agent (RTA), suggesting that securities issued on its platform are ‘valid’ and warn users that offboarding may require re-issuance via legal teams or another RTA, therefore increasing cost and time spent.

An RTA acts as the official registrar, handling transfers, cancellations, and interfacing with brokers. 



This is mainly required for public companies with securities registered under Section 12 of the Exchange Act or for large private issuances conducted under specific SEC frameworks such as Regulation A+ and Regulation Crowdfunding.

For most private companies, these securities are not “qualifying securities” as defined in Section 3(a)(25) of the Exchange Act. As a result, Section 17A(c) does not require them to use a registered transfer agent. 



In such cases, the validity of the shareholder ledger comes from state corporate law, board approvals, executed agreements, and compliance with securities exemptions, rather than from the platform itself. 



When needed, companies can still engage RTAs on a standalone basis.
For most private companies, an SEC-RTA isn’t required; validity comes from board approvals, executed agreements, and legal compliance, not from the platform itself.

Carta’s includes unlimited system-generated and automated unlimited 409A valuations in its plans.

While fast and inexpensive, they often lack the credibility required by IRS, auditors, and investors. So despite these system-generated reports, companies frequently end up commissioning an independent third-party valuation anyway, leading to additional costs and delays.