Carta Exits Secondary Market Business After Sales Controversy

Carta Inc., a fintech firm that works with startups, is getting out of the stock sale business following a controversy over its use of customer data.

In a blog post Monday night, Carta Chief Executive Officer Henry Ward said the company will stop its work in secondary share trading, a business it was pushing into alongside its service managing startups’ investor information, or cap tables.

The company faced backlash over the weekend for combining the two businesses. On Friday, startup CEO Karri Saarinen accused Carta of using its cap table data to approach one of its investors about selling shares ...