San Francisco-based Carta, the market leader in cap table management software, is facing criticism from startup founders who claim it's too difficult to cancel their subscriptions. The issue first surfaced on social media platform X, where founder Sudarshan Sridharan of Pipeline posted about his struggles trying to cancel his subscription, calling Carta "anti-founder" for making it impossible to cancel or speak to a human support agent.

The problem lies in Carta's requirement for a "cancellation request" meeting with a customer success manager to end a subscription. However, some founders have reported that the available meeting slots are only available well past their renewal dates, making it difficult to cancel in time. Adam Ryan, the CEO of startup WorkWeek, also shared his experience, saying that the next available date for cancellation was December 26th, well past his December 17th renewal date.

Carta has attributed the issue to a "one-time staffing challenge" and claims that customers who need support during this time can connect with their live Support Team via chat or phone during extended business hours. However, several of Carta's competitors have spoken out against this practice, saying that they don't require meetings to cancel service. AngelList's Sumukh Sridhara, the Founder Products Lead, stated that customers can fully cancel their subscription directly in the software by clicking a few buttons or by sending an email, and that there is no good reason for a cap table vendor to force customers to get on a call.

Pulley, another competitor, also said that their cancellation process is straightforward, with customers able to cancel their subscription by emailing support@pulley.com. The company's VP of Marketing, Alison Gonzalez, emphasized that there is no requirement to book an appointment or attend a cancellation meeting, and that the cancellation request is processed upon receipt of the email.

Requiring meetings to cancel subscriptions runs the risk of staffing shortages delaying when a founder can cancel, which could have significant implications for startups. Carta's appointments system is designed to ensure customers fully understand the process and migrate securities data as smoothly as possible, but some founders have reported inconvenient meeting times, such as 6:00 AM on the day after Christmas.

Despite the criticism, Carta remains a popular choice among startup founders, with many praising the company's product. However, this is not the first time Carta's practices have come under scrutiny. In January 2024, coding startup Linear's founder, Karri Saarinan, accused Carta of sharing private cap table data, claiming that a Carta employee contacted one of his angel investors claiming to have an offer for his shares without notifying Saarinen first. Carta eventually exited the secondary stock trading market, selling it to stock trading startup Public in August.

The controversy highlights the importance of transparency and flexibility in cap table management software, particularly for startups that rely on these tools to manage their funding. As the market leader, Carta's practices set a precedent for the industry, and the company's response to these criticisms will be closely watched by startup founders and investors alike.