James Johnson
Introduction:
In the realm of venture capital and startups, sexual harassment or gender discrimination lawsuits are a rare occurrence, often veiled by nondisclosure agreements and confidential settlements. Yet, the saga unfolding at equity management startup and unicorn Carta is a notable exception. Valued at $7.4 billion two years ago, backed by industry titans like a16z and Silver Lake Partners, Carta has witnessed a string of gender-related lawsuits that have rocked its foundation. In this narrative, we delve into the most recent allegations against the company, shedding light on a tumultuous chapter in its history.
The Allegations:
As of this summer, three women have filed gender-related lawsuits against Carta, an unprecedented development in the startup landscape. Additionally, in 2020, another woman took to Medium to detail her alleged grievances against the company. While Carta, CEO Henry Ward, and CRO have steadfastly denied all allegations in court filings, the public nature of the accusations sets a stark contrast in a typically guarded industry.
Behind the Scenes:
To unravel the complexities of the situation, we engaged with eight individuals, including former and current employees, investors, and insiders with insights into the company’s board. We scrutinized a letter penned by Carta’s former CTO, which catalyzed a board investigation last year. This key document shed light on internal tensions and prompted further scrutiny.
A Turnover Trend:
In tandem with the legal challenges, Carta has grappled with a significant turnover of senior employees. The perception among some insiders is that the turbulence has cast doubt on the stability and leadership within the company. Observers posit that this unrest may have implications for Carta’s trajectory and its ability to navigate an ever-evolving market.
Conclusion:
The mounting litigation and high turnover at Carta serve as a stark reminder of the complexities that can arise within even the most prominent startups. As the legal battles continue and the company grapples with internal discord, the trajectory of this once-celebrated unicorn hangs in the balance. The challenges facing Carta resonate far beyond its walls, offering insights into the broader dynamics of workplace culture and gender dynamics in the startup ecosystem.
