Cap Table & Equity Management3 min readUpdated September 2026

Pulley vs. Carta for Coaching Businesses Granting Equity

For a coaching business granting equity, the deciding factor between Pulley and Carta is how quickly and reliably each delivers a 409A valuation, so compare their current turnaround times before you issue anything. Skipping the valuation leaves the grant without a defensible strike price and the recipient with a tax problem they never signed up for.

Coaching and cohort education businesses are unusually people-dependent. The person delivering the program often is the product, so equity gets used as a retention tool earlier and more casually than in most other industries.

Vendors Covered in this Article

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Why the Valuation Is the Gating Step Here

Option grants need a strike price at or above fair market value, and a recent independent 409A valuation is the usual way to support that price if the IRS asks. For a coaching business, that valuation has to account for revenue that is often concentrated in one or two facilitators, which is not a straightforward thing for a generic valuation process to capture well.

If your business has changed shape recently, say you added a cohort program on top of one-on-one coaching, the valuation needs to reflect that shift. A stale 409A, or one that predates a material event like a pivot, may no longer support your strike price, which puts grants issued against it at risk.

Where Pulley Fits a Coaching Business

Pulley offers 409A valuations, so compare its current turnaround time and refresh process against Carta's. For a coaching or cohort education company issuing options to a handful of facilitators and operators, that speed matters more than almost anything else the platform offers.

It also fits the typical structure here well: one entity, a small cap table, and a need to model dilution the next time the founder raises outside capital or brings on a co-owner.

Where Carta Fits a Coaching Business

Carta becomes the better fit once a coaching brand has scaled into something closer to an education company, with multiple programs, a larger team, and a need to benchmark compensation against comparable roles in adjacent industries.

It also fits better if the founder wants to let an early facilitator sell part of a vested stake before any acquisition talks start, since Carta supports that kind of liquidity event more directly than a lean cap table tool does.

What Goes Wrong When the Valuation Gets Skipped

The most common mistake is granting first and valuing later, if at all. When the IRS or a future acquirer eventually asks for the valuation behind a grant, a business that never got one, or that got one long after the fact, has no clean answer. The recipient can end up owing tax on income they never actually received in cash.

The fix is simple to state and easy to skip under deadline pressure: as a rule, no option grant goes out before a current 409A exists. If a facilitator is leaving next month and you want to lock them in today, get the valuation moving first.

A Short Checklist Before You Grant Anything

Confirm the entity that will hold the grant is the right one, especially if the coaching business and any cohort program run under separate legal names. Confirm the valuation is less than twelve months old and reflects the business as it looks today, not as it looked before your last product change.

Confirm the recipient understands vesting and what happens if they leave to run their own program, since that is the scenario founders in this industry worry about most and plan for least.

Comparing Setup Time When a Facilitator Is About to Walk

Founders usually reach for cap table software at the worst possible moment: a valuable facilitator has one foot out the door and the founder wants to make an equity offer today. That pressure favors whichever platform can get a defensible 409A moving fastest, so compare Pulley's and Carta's current turnaround times for a single, uncomplicated entity.

Carta can still move quickly, but its setup overhead is built around a broader range of structures than most coaching businesses have. If your business is genuinely simple, one entity, one or two founders, a handful of facilitators, that overhead buys you capability you are not yet using, in exchange for a slower path to the grant you need this week. That tradeoff reverses the moment a second program line or an outside investor enters the picture, so it is worth revisiting the choice rather than treating it as permanent.

Before a facilitator receives an offer, work through this sequence:

  1. Confirm the entity that will hold the grant is the right one, especially if the coaching business and the cohort program run under separate legal names.
  2. Order a current valuation that reflects revenue often concentrated in one or two facilitators, rather than the business as it looked before your last product change.
  3. Compare Pulley and Carta on current turnaround time for a single valuation, since a facilitator with one foot out the door will not wait.
  4. Issue the grant only after the valuation supports the strike price, never granting first and valuing later.
  5. Make sure the recipient understands the tax treatment and what happens to the stake if they leave to compete.
Executive Capability Standard

What Good Looks Like

A coaching or cohort education business that has this right keeps a current 409A on file at all times, issues nothing against a stale number, and can show any facilitator exactly what their grant is worth and when it vests.

Building The Capability (5-Stage Skill Ladder)

1. Learn:Map every person who has been promised or already holds equity, and confirm which entity the grant sits in if you run more than one program under different names.
2. Do Manually:Get a current 409A valuation before any new grant goes out, and calendar the date it expires so it never lapses unnoticed.
3. Delegate:Assign one owner, not the founder, to track vesting dates, valuation expiry, and grant paperwork across every facilitator and operator.
4. Automate:Move the cap table into Pulley or Carta so valuation refreshes, vesting, and dilution modeling run on a schedule instead of a memory.
5. Buy:Pair the platform with an attorney who understands equity in service businesses, so grant agreements hold up if a facilitator ever disputes the terms.

How to Get Started

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Frequently Asked Questions

How often does a coaching business need a new 409A valuation?

At least every twelve months, and sooner if something material changes, such as a new revenue line, a large new contract, or outside investment. A valuation tied to an old version of the business will not hold up if it is ever challenged.

Should a lead facilitator get real stock or a bonus tied to revenue?

It depends on whether you want them to have a genuine ownership stake with the rights that come with it, or a retention payment that tracks performance without granting control. Many coaching businesses start with the second option because it is simpler to unwind if the relationship ends.

What happens if a facilitator with equity leaves to compete?

That depends entirely on the vesting schedule and any restrictive covenants in the grant agreement, not on the cap table software. A well-drafted agreement addresses forfeiture of unvested shares and, separately, whatever non-compete terms are enforceable in your state.

About the numbers

This guide doesn't quote a sourced benchmark. Figures in it are estimates or general guidance, so check them against your own numbers.

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