Deepak Gupta

Startup guide

Carta for startups: free Launch tier, cost, and alternatives

By Deepak GuptaLast verified Jul 2026

The short answer

Carta Launch is free for early startups with a small cap table, commonly up to about 25 stakeholders and around $1 million raised, covering electronic share issuance, a 409A-ready cap table, and equity management. Past those limits it converts to a paid plan (or roughly 20% off through startup channels). It is the standard tool for keeping a clean, investor-ready cap table from incorporation.

Apply at Carta See full eligibility and steps

At a glance

Max value: Free tier for early stage
Referral: Not required
Review time: 0-1 days
Stages: Bootstrapped, Pre-seed

Is Carta free for startups?

Carta Launch is free for early startups with a small cap table, commonly up to about 25 stakeholders and roughly $1 million raised. It covers electronic share issuance, a clean cap table, and basic equity management. Once you cross those stakeholder or funding limits, Carta moves you to a paid plan, though startup channels sometimes offer around 20% off. Confirm the current Launch thresholds, since they change.

Who needs Carta, and when?

You need a real cap-table tool the moment you issue founder stock and start granting equity, because errors compound and are painful to unwind at a financing or acquisition. Carta suits startups that plan to raise venture capital and will have a growing option pool and multiple stakeholders. A pre-incorporation solo founder can wait; a funded team with employees issuing options should not run equity on a spreadsheet.

What does Carta do beyond the cap table?

Beyond the cap table, Carta handles electronic share and option issuance, 409A valuations (which set the strike price for employee options), board and stakeholder reporting, and scenario modeling for fundraises. As you scale it adds fund administration and compliance features. For an early startup the core value is a single source of truth for who owns what, kept in a form investors and lawyers trust during diligence.

Carta vs AngelList, Pulley, and a spreadsheet

Cap-table tools differ on price, whether they bundle banking and fund tools, and how much they cost as you grow. Choose by your stage, whether you want an integrated stack, and how many stakeholders you will have.

Option	Value	Best for	Notes
Carta LaunchThis guide	Free (Launch tier)	The standard, investor-trusted cap table	Free up to ~25 holders and ~$1M raised; paid (or ~20% off) beyond that. Adds 409A and reporting.
AngelList (Stack)	Free incorporation + cap table	An integrated formation, banking, and cap-table stack	Bundles company formation, banking, and cap table; strong for founders who want one platform.
Pulley	Free tier + paid plans	A modern, founder-friendly Carta alternative	Competitive pricing and UX; smaller network than Carta among later-stage investors.
Spreadsheet	Free	The very earliest pre-funding stage only	Fine before you issue options; error-prone and a diligence liability once equity gets real.

Amounts and pricing change often. Verify current terms on each provider's official page before applying.

Frequently asked questions

Is Carta free for early startups?

Yes, the Carta Launch tier is free for startups with a small cap table, commonly up to about 25 stakeholders and roughly $1 million raised. It covers electronic share issuance and cap-table management. Beyond those limits it converts to a paid plan, sometimes with around 20% off through startup channels. Confirm the current Launch thresholds on Carta.

When do you outgrow Carta Launch?

You outgrow the free Launch tier when your cap table passes roughly 25 stakeholders or you cross about $1 million raised, at which point Carta moves you to a paid plan. Priced-round financing, a growing option pool, and 409A needs are the usual triggers for upgrading.

Do I need Carta if I use Stripe Atlas?

They solve different problems and pair well. Stripe Atlas forms the company and issues founder stock at incorporation; Carta manages the cap table over time as you grant options and raise. Atlas gets you a clean starting cap table, and Carta keeps it accurate and investor-ready as ownership changes.

What are the best Carta alternatives for startups?

AngelList Stack (an integrated formation, banking, and cap-table platform) and Pulley (a modern, founder-friendly cap-table tool) are the main alternatives; a spreadsheet works only at the very earliest pre-funding stage. Carta wins on being the investor-trusted standard, which matters during diligence.