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A South Korean startup calledQuotaLabis on a pursuance to keep abreast in the footsteps of Carta , the crownwork mesa management society that ’s used by a host of inauguration and investors in the U.S.
Carta started life as “ eShares ” in 2012 as a cap table management armed service that startup could apply to issue equity to their investor and employee . Today , its stalls of offerings has extend to include everything from valuation and equity management , to bookkeeping , risk judgement andbrokerage serve . It also ran a lowly share market that investors could use to sell contribution in startup , butshut down that serviceearlier this year after a bit of controversy .
A Y Combinator ammonia alum , QuotaLab also started off as an equity management table service ( calledQuotaBook ) for startups and investors in South Korea . Now , with the post - merger integration of investor - facing investment trust management service LogosSystem heading to a last , it is aiming to become a one - stop shop that the Korean startup and investor community can expend to deal their funds , equity , investing , LP relations and more .
“ Though we started as a computer software company , we ’re now planning to evolve into a fiscal party , ” QuotaLab ’s chief operating officer and co - founder , Andy Choi , tell TechCrunch . “ With our 40 % mart share on the startup side , 80 % market share on the VC side , and being the sole instrumentalist on the LP side , we ’re basically the financial infrastructure powering the Korean venture ecosystem . We ’re seem into what financial line we can pursue . ”
QuotaLab was founded by three former venture capitalists — Choi , Dan Hong and Pilseon Jun. Familiar with the problems GPs have to deal with , they experience the chance for a erect SaaS answer in the space : streamline old putz and spreadsheets into a platform that investors could use to manage their portfolio company and share data with limited partners .
Choi suppose the company ’s decision to larn LogosSystem last class for $ 23 million ( KRW 30 billion ) was mean to help QuotaLab cover the entire speculation market in South Korea : “ Before the acquirement , our service only dealt with inauguration and investors ( GPs ) . Now we can connect the whole inauguration - to - investor - to - LP ecosystem , which is the first sentence ever in South Korea ’s venture account , ” he said . The skill come slimly more than a year afterQuotaLab call down an $ 11 million beat .
“ For GPs , the [ LogosSystem ] platform supply functionalities for managing their funds , include LP management , like LP info , link stage , commitments , capital calls , distributions , reporting , etc . It also volunteer investment direction such as investment , returns , asset variety , markdowns , rating , accounting , vitamin E - approvals and risk management , ” Choi added .
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LogosSystem also enables LPs to manage their fund of funds and related assets ( data on fund they ’ve invested in ) . Choi noted thatBlackRock ’s eFrontis like in terms of the functionalities offered .
According to Choi , the equity direction market has many side you’re able to undertake . “ One is the issued securities side , which normally look at with already issued equity such as shares , bond , convertibles , etc . , ” he said . “ Within this area , if it is just going to be about back - office information management , then a general Excel or enterprise resource planning - like solution can work . Early solutions used to be like this , ” Choi said .
But equity management platforms call for a deeper apprehension of the relationship between startups and their investors , and those human relationship deviate reckon on the mart because of dissimilar VC moral force , civilization , stock L-P structures , etc .
“ For example , an fairness direction platform that only comprehend inauguration demand but does n’t cover investor demand ca n’t be sold in a marketplace where investor are also key decision makers . On the other side are equity awards . This normally deal with stock options , RSU(Restricted Stock Unit ) , etc . This is way of life more local , as it is closer to HR and there are many different law governing the [ character of rewards potential , taxis , appraisals , etc . ] . ”
In a nutshell , big emphasis on stakeholder relations , specialised service for in - astuteness securities data direction , and different equity laurels market are all novel and unlike business opportunities that the companionship is hope to harness , he add . Choi said the programme has not yet been finalized , but it could be a stock brokerage company or a transfer agent , and the startup plans to register with the Korean financial authorities shortly .
Post-merger plans
QuotaLab has already started integrate LogosSystem ’s investor fund management inspection and repair within QuotaBook , Choi sound out .
“ For functionality , mainly for interacting with LPs , there were previously overlaps between the [ QuotaLab and LogosSystem ] . We are unify the affected functionalities of QuotaBook with LogosSystem , since [ the latter ] has way of life more advanced functions , ” Choi explicate . “ For functionality that are mainly for interact with portfolio troupe , LogosSystem just had any of it . Thus , we are enhancing the relevant functionality in QuotaBook , and are integrating the two products so that portfolio data can be easily synced to LogosSystem ’s platform . ”
Both platforms will benefit each other ’s meshwork , according to Choi . “ QuotaBook can utilize LogosSystem ’s investor customer syndicate for moreupsellingopportunities andcross - sellto their portfolio companies . ”
LogosSystem ’s CEO and laminitis left the company after the cut-rate sale , but the next ranked person , who has been at LogosSystem for around 20 geezerhood , has been appointed the new CEO to lead the team . In Addition , LogosSystem ’s 45 employees remained on the team . Now QuotaLab has 75 staff as of today .
“ There will be no change to the current structure of LogosSystem , as its business has been strong , ” Choi note .
The cap table management outer space has grown a shade crowded in late class as startups have proliferated around the humans , especially in Asia . Choi tell me back in 2022 that QuotaLab planned to expand into Southeast Asia . He did n’t specify which countries the company was considering when I demand him recently , but if it is still targeting Southeast Asia , QuotaLab is potential to regain itself compete in that neighborhood with Singapore - basedQapitaand Hong Kong – free-base token and equity direction startupSprout . It will also have to fight for market share as it expands internationally with the bigger participant in the infinite such as Carta and AngelList , as well as raw entrants likePulleyand Deel ( thanks to itsrecent acquisition of Capbase ) .
The company might even take the accomplishment route to pursue its expanding upon plans . QuotaLab is open to making extra learning , Choi said , sum that there is unquestionably likely to raise more financing to patronage those plans .
Last year was challenging for startups , but that did n’t bear upon QuotaLab much , because most of its tax revenue has been from midsized businesses , enterprise company and investors , according to Choi . Today , QuotaLab has around 5,500 user on its weapons platform , up from 3,500 in 2022 .
YC grad QuotaBook raise $ 11 M to descale its equity management platform
