Equity management platform Capdesk, that acts as the one-stop-shop for private companies to digitise their equity information (such as cap tables, shareholder register, or equity reporting) as well as issue, track and manage employee shares, has raised a further £3 million in Series A funding.
Returning to lead the round is London based Fuel Ventures who have already injected £7m of funding since March into new and existing investments amidst the economic crisis.
Founded in 2015 by Christian Gabriel, Mikkel Boje & Martin Damhus, the company has close to 1000 of Europe and the UK’s growing scaleups such as Secret Escapes, Curve, Nutmeg, Privitar and Gousto all leveraging the platform as the most cost-effective and transparent way to create and manage option plans, adhere to compliance regulations, file forms and invite employees to understand and track their ownership.
With this funding, Capdesk have additionally launched their very own secondaries feature in partnership with Seedrs and Shieldpay to become Europe’s first platform to democratise the secondary private equity market for all classes of shareholders.
Employee shares in private companies can now be turned into cash, by offering potential buyers a platform to execute share transactions without the huge legal fees or messing up the cap table.
“I could not be more excited about the launch of our secondaries feature and partnerships. This positions us as Europe’s first fully digital solution for employees to obtain cash by selling a percentage of their options or warrants in the UK and Europe,” says Mikkel Boje, CTO & Co-founder.
Christian Gabriel, CEO & Co-founder adds, “The transactional relationship between employer and employee has remained almost unchanged since the industrial revolution.
“Capdesk is on a mission to change this. Our vision is to create a new compensation model where employees have the power to decide how much they want to be compensated in cash and in equity. We’re talking about a whole different way of envisioning company growth, value creation, and compensation for private companies. This is going to be huge.”
Mark Pearson, Managing Partner at Fuel Ventures says, “We’ve watched Capdesk establish itself as the European leader for equity management, leading this next round of funding was a no brainer especially amidst COVID-19.”
In preparation for the secondaries launch and European expansion, the company has beefed up its commercial leadership by recruiting Hakon Junge, previously Head of Market Launching at the hugely successful Danish Fintech Pleo as their new CCO.
Hakon Junge, CCO @ Capdesk says, “Having personally fallen victim to the startup “employee equity trap” in my career, our mission at Capdesk could not be clearer especially looking at the economic crisis we’re facing.
“We’re creating a win/win scenario for employers to educate and empower their people with the wealth creation they are driving and I could not be more excited to be part of this movement.”