Public, a stock-trading startup, has made a significant move in the brokerage industry by acquiring the brokerage accounts of Carta’s secondaries business. Carta, well-known for its cap table management software, had ventured into the secondary marketplace brokerage business but faced backlash earlier this year when a startup accused them of using private cap table data to broker a sale without their knowledge. This controversy led to Carta abandoning the business.
Public’s acquisition of Carta’s customers is a strategic move that expands its reach and offerings. By acquiring these brokerage accounts, Public gains access to Carta’s stockpile of data, which can provide valuable insights and opportunities for their customers. This acquisition not only strengthens Public’s position in the industry but also allows them to offer a wider range of services to their clients.
It’s worth noting that Public has been making waves in the stock-trading market with its unique approach to investing. Unlike traditional brokerages, Public focuses on community-driven investing, allowing users to buy and sell fractional shares of stocks and ETFs. This approach has resonated with a new generation of investors who value transparency and community engagement.
Public’s acquisition of Carta’s brokerage accounts also comes with a customer-centric approach. Public has assured Carta’s former customers that they have the right to opt out if they choose to do so. This commitment to customer choice and transparency is crucial in building trust and maintaining a positive relationship with users.
On the other hand, Carta is not completely exiting the secondaries business. They will continue to serve with company-led secondary offerings, such as tender offers, through their SEC-registered transfer agent. This decision indicates that Carta recognizes the potential value in this market and is adapting its approach to focus on specific offerings.
Overall, Public’s acquisition of Carta’s brokerage accounts is a strategic move that expands their reach and offerings in the stock-trading industry. It allows Public to tap into Carta’s data stockpile, strengthening their position and providing valuable insights to their customers. Additionally, Public’s commitment to customer choice and transparency sets a positive precedent for the industry. Meanwhile, Carta’s decision to focus on company-led secondary offerings suggests that they are adapting their approach to better serve the market.