Don MacAskill

Getting back to this now. Was making dinner (American beef stew by Kenji btw) Henry if you insist I’m happy to share details or my version of the call. This is why I hate doing these calls because everything becomes I said/you said. First of all, I posted this publicly because I suspected there is a broader systematic issue with Carta. A company that is dealing with extreme trust, corporate cap table and other private matters, should take safe guarding confidential information seriously . Since then I’ve learned from multiple companies that this has been going on for months or even years where investors or employees of private companies are solicited by Carta employees to put their shares on sale. These people haven’t opted in to this and companies haven’t approved these sales. If Carta and Carta Marketplace employees have free access to company information and cap table information in order to generate secondary sales (which companies often don’t want) it all starts to seem rotten. My comment was about losing trust in Carta to safeguard our corporate matters. Nothing you or Carta has done so far has been able to return that trust. The simple fix here is to state that this is not the practice of Carta going forward. The call: - I share my disappointed and surprise that Carta is doing this after 10 years of using the product in other companies. I’ve been approached by other companies in the space but I always believed Carta is the best in class in the business. I ask him to explain what happened. - Henry starts explaining Carta Marketplace is a separate business from Carta. They have investors that come to them with their portfolios in order to offload shares, mostly with growth companies. He mentions several companies who they transact with “all the time”. - He claims that in this case our existing investor "a fund they deal with time to time” was interested buying Linear shares (I reached out to handful of our investors who have funds or potential to do funds but so far everyone said they didn’t do this and wouldn’t consider going around our back like this. Unconfirmed.) - He explains commonly Carta Marketplace looks for sellers and buyers in their platform who have opted in to it. But in this case the employee in question, again not employed by Carta but a separate business, Carta Marketplace, was able to access our cap table data by their “break the glass” system which requires approval to see customer data. He didn’t know how it was done, he offered that potentially the employee self approved the request. The employee in question was put on administrative leave. - Henry acknowledges that mistakes were made. - I commented that since I’ve heard from multiple founders and companies that their investors and employees have approached, that it seems there is a culture or integrity issue with the company if these things keep happening. I asked Henry if he plans to do anything about it. He answered that he will reflect on it. - He continues saying that they will still want to pursue liquidity even if they make mistakes now and then. It’s new and people don’t get it. He also mentioned that most CEOs are happy to hear that there is demand for their shares. They were also supposedly planning to contact us but it just didn't happen. - At the end Henry blames me making a big deal out of “an email” (so far I’ve heard from 6 investors where contacted over the months and other companies had this happen to investors and employees as well) After the call I’ve learned Henry has been trying to explain this as “isolated incident” over tier 1 VC email group and saying the only way this to happen is if the company has opted in to CartaX. My trust in Carta is lost and the only fix I see here is that there are controls put in place between the marketplace and the Carta cap table management. Information shouldn’t flow freely and companies should be asked for approval or given heads up when there is activity.

Added gratuitous explosions and particle effects to the code editor I'm building