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AngelList Venture wants to make cap table management cheaper – londonbusinessblog.com

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AngelList Venture Starts Stack Stock Management, a way for startups to organize and manage their cap tables natively within the platform. Stack Equity is a suite of products that companies use to raise, update, and buy shares of founders, employees, and investors. It is available today for US-based C Corporations.

It may sound like a niche product launch, but here’s the real news: The company is up against its biggest competitor, Carta, when it comes to cap table management pricing. Stack Equity Management charges companies based on team members, while Carta charges companies based on stakeholders, i.e. investors, on the cap table.

Why? AngelList claims that stakeholder-based stock management software means that people on your cap table can cost you hundreds of dollars a year, despite their position in your company not changing.

“The messier the cap table gets, the more it costs in terms of software costs and costs in terms of attorneys,” CEO Avlok Kohli said in an interview yesterday.

AngelList’s take on the change in price aims to incentivize founders to take as many checks as they need from investors — which can become especially necessary during a downturn — without incurring more costs.

“What’s happening in this environment is that investors are still continuing to invest; they’ll just shrink their check so founders have to talk to more investors,” Kohli said. to make.”

The company, which was last raised at a valuation of $4 billion, has bundled the services of its founders in recent years, making today’s product announcement another example of how it sees the future of launching (and scaling) of a company.

Last year, AngelList teased its intent for today’s product launch. The new software was created to cover four bases: end-to-end integration, corporate banking, advisor grants and cap table management. Months earlier, it launched roll-up vehicles (RUVs), which allow founders to raise capital from up to 250 accredited investors with a single line on the cap table.

As RUVs have grown, Kohli explained, founders asked AngelList Venture for a better way to look at RUVs in their cap tables; of course that’s hard if AngelList doesn’t host cap tables to begin with. That led to the conversation that ultimately inspired Stack Equity Management.

When asked how this product helps AngelList Venture compete with Carta — which last month acquired its own AngelList-type startup — Kohli said he has nothing new to add.

“Eventually there will be a small number of people who actually have the ability to build a calculated product,” he said. “When I say skill, I don’t mean technical skills, but the institutional knowledge to build something.”

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