Summary:
Founders criticize Carta for making subscription cancellations overly complicated.
Sudarshan Sridharan and Adam Ryan share their experiences of delayed cancellation meetings.
Carta attributes the issues to a one-time staffing challenge.
Competitors like AngelList and Pulley offer easier cancellation processes.
Despite complaints, many founders still value Carta's product quality.
The Costly Challenge of Canceling Subscriptions
Running a startup can be expensive, often requiring various subscriptions. Cap table management software, which helps founders organize their funding, can cost thousands of dollars a year. San Francisco-based Carta is the market leader in this industry, but some startup founders claim that cancelling their subscriptions is unnecessarily difficult.
Founders Voice Their Frustration
The issue gained traction on X when founder Sudarshan Sridharan of Pipeline expressed his frustration, stating, "I’m speechless at how anti-founder @cartainc is. They make it impossible to cancel your subscription or speak to a human support agent." He revealed that Carta required a cancellation request meeting with a customer success manager, with available slots only starting December 26, well past his December 17 renewal date.
Adam Ryan, CEO of Workweek, shared a similar experience, noting that the next available cancellation date was also past his renewal date. He opted to cancel his card instead of completing the cumbersome cancellation process.
Carta Responds
In response to the backlash, a Carta spokesperson explained that the scheduling issues were due to a “one-time staffing challenge” and assured that customers could still connect with their live support team during extended business hours. However, several competitors pointed out that they do not require meetings for cancellation.
Sumukh Sridhara, from AngelList, stated, "Customers can fully cancel their subscription directly in the software by clicking a few buttons or by sending us an email." Similarly, Pulley emphasized that their cancellation process is straightforward, requiring only an email to support@pulley.com.
The Risks of Complicated Processes
Requiring meetings for cancellation can delay founders from ending their subscriptions, especially during staffing shortages. Despite Carta's claims that their appointment system is designed to facilitate a smooth cancellation process, many founders remain frustrated.
Customer Perspectives
Despite the complaints, many founders still prefer Carta for its product quality. Comments on the original viral post show users praising Carta, with some stating they switched back to Carta after trying competitors.
Prior Controversies
Carta has faced scrutiny in the past, including accusations of unethical tactics and mishandling private cap table data. In response, they announced their exit from the secondary stock trading market to prioritize trust with their clients.
Comments