In a recent development, Silicon Valley-based tech equity unicorn Carta has today announced the acquisition of European equity management leader Capdesk. This acquisition is a part of their shared vision to solve the illiquidity of private markets. The pair will empower businesses all over the world to scale across borders. This deal follows the recent acquisition of another London-based fintech Vauban.
While this deal comes at a time of uncertainty across the VC and startup landscape, however the expertise, data-led tools, and transparent nature of both Capdesk and Carta’s solutions can help companies plan against shifting conditions. The two solutions help startups attract the best talent; empower employees to own and access the wealth they helped create, at a time that suits them; and equip investors with greater control over their portfolios.
Despite the market turbulence, Capdesk has seen the continued growth and success of its product in Europe and has doubled its revenue in the last 12 months. This performance positioned Capdesk as the clear choice for Carta.
As part of the deal, Capdesk will operate as an independent business unit within Carta for now.
Christian Gabriel, Co-Founder & CEO, Capdesk: “We founded Capdesk with a vision of changing finance for good by leveraging the power of equity for the benefit of founders, investors and employees alike. I’m thrilled we’ve identified a shared vision in Carta. This deal will enable us to further strengthen our position across Europe.”
Henry Ward, Co-Founder & CEO, Carta: “We’ve been following Capdesk’s impressive journey for years. Before Capdesk, employers would have had to manage equity manually with legal counsel in each country. With Capdesk, employers can simply onboard and trust one single provider with managing the detailed requirements of multiple jurisdictions. Capdesk’s founders — Christian, Martin, and Mikkel — have led a cross-border equity revolution. We’re thrilled to be welcoming their vision, expertise and experience to the Carta fold and we’re grateful to have all three founders stay on as key leaders within the company.”
What holds for Capdesk’s customers?
Over time, Capdesk customers will gain access to Carta’s products and services, including compensation benchmarking data and 409a valuations. Meanwhile, Carta will leverage Capdesk’s expertise, unique understanding of equity, and dominance in Europe to further expand its services worldwide. Notably, Capdesk’s platform caters to the requirements of Companies House and HMRC in the UK and other regulatory authorities in Europe.
Founded in 2015 in London, Capdesk is trusted by over 3,500 fast-growing companies in Europe such as Checkout.com, Gousto, VOI, Wagestream, and Plum Guide, among others. It lets these companies manage their ownership via a single platform. The fintech startup oversees over £90 billion worth of assets and has created an end-to-end equity management system, which serves customers at each stage, from seed to IPO.
Further, Carta provides equity management to more than 30,000 companies, 5,000 funds and half a million employees. It supports users with cap tables, compensation, valuations, portfolio investments, liquidity, and more, and has managed over £1.5 trillion in equity to date. Companies and funds like Canva, Tribe, and Pipe build their businesses on Carta.