Equity Management for European Startups | Ledgy

Addressing Cap Table Management for Global Startups

A common challenge for all startup founders revolves around effectively managing their cap table and equity plans with both clarity and efficiency. For those operating within the United States, solutions like Carta are frequently utilized. However, startups located outside the U.S. often find themselves with limited options available.

Ledgy: An International Ownership Management Solution

Ledgy aims to establish itself as the leading ownership management platform for companies worldwide. Headquartered in Switzerland, the company already serves a number of prominent European startups, including Wefox, Kry, Bitpanda, Gorillas, and Trade Republic.

Recent Funding and Investors

The company has recently secured $10 million in Series A funding, with Sequoia Capital leading the investment round. Additional investors participating included Xavier Niel, Harry Stebbings, Visionaries Club, UiPath’s Daniel Dines, and Front’s Mathilde Collin. Existing investors, such as Myke Näf, Paul Sevinç, btov Partners, Creathor Ventures, and VI Partners, also contributed to this funding round.

The Problem Ledgy Solves

Ledgy co-founder and CEO, Yoko Spirig, encountered a founder who managed ownership using a cumbersome method. He relied on an Excel spreadsheet, requiring extensive scrolling to review each individual share. As Spirig noted, this approach is inherently prone to errors.

Prevalence of Manual Tracking

Despite the availability of specialized software, many European companies continue to depend on Excel spreadsheets for ownership management. Ledgy seeks to demonstrate the advantages of transitioning to a dedicated software solution designed specifically to address this issue.

Focus on Adaptable Infrastructure

“Our primary focus has been on building robust software infrastructure,” Spirig explained. “We’ve implemented automated workflows that can be adjusted to accommodate the regulations of different countries.” She emphasized that Ledgy isn’t concentrating on a single regulatory framework, but rather providing a foundational infrastructure layer.

Global Coverage and Future Expansion

Currently, Ledgy supports 32 countries, with specific enhancements tailored for Germany, Austria, and Switzerland. Further country-specific releases are planned for startups based in the U.K. and France. The platform is presently utilized by 1,500 companies.

Key Benefits of Using Ledgy

Switching to Ledgy offers three primary advantages. First, it functions as a centralized, reliable source of information for all stakeholders – including HR, finance, investors, legal counsel, and employees.

Secondly, the platform automates repetitive and time-consuming tasks. For example, Ledgy can automatically generate documents based on pre-defined templates and variables, and securely store signed documents. Data can also be exported quarterly or annually to meet compliance requirements.

Finally, Ledgy promotes transparency throughout the organization. Employees can readily access information regarding the value of their stock options and project their potential worth during future funding rounds.

Future Plans

The recent funding will enable Ledgy to expand its reach into new markets. The company also intends to introduce support for publicly traded companies, allowing existing customers to maintain continuity when they go public.