Carta, which manages the cap table for approximately 40,000 privately funded startups, will no longer act as a broker arranging deals in stock sales of those companies, following an explosive conflict of interest scandal that has already caused the company to temporarily pause sales outreach for its core business.
In a blog post on Monday, Carta CEO Henry Ward announced that "we will exit the secondary trading business to eliminate any concern that we are not acting in our founders’ best interests."
