Best Equity Management Software in 2024

As we navigate through 2024, it's clear that the world of finance and technology is buzzing more than ever, especially when it comes to managing equity. This is where the use of equity management software comes in handy. They automate the task by simplifying complex equity plans, keeping things above board with regulations, and making sure everyone from investors to employees stays in the loop.

Having said that, with so many options available, finding the right equity management software is like looking for a needle in a digital haystack. To make the process easy for you, we have handpicked the best equity management software trusted by credible names in the industry.

Before taking a look at them, let’s first peek a glance at the benefits of using equity management software for your startup:

Benefits of Equity Management Software

As companies grow, so do the complexities of managing stock options, equity compensation plans, and shareholder agreements. This is where the use of equity management software comes into play. It offers a blend of efficiency, accuracy, and transparency that manual processes can hardly match. Here are the major benefits of using one:

Simplified Equity Plan Management

The primary attraction of equity management software lies in its ability to simplify the intricate processes involved in managing various equity plans. With features designed to automate and streamline stock option grants, vesting schedules, and exercise processes, these platforms reduce the administrative burden on teams.

This simplification not only saves time but also minimizes the risk of errors and ensures that every piece of equity is accounted for accurately.

Enhanced Regulatory Compliance

In today’s time and age, staying compliant is more challenging and crucial than ever. Equity management software is built with these regulations in mind. Most such products come with features that help businesses adhere to tax laws and reporting requirements across different jurisdictions.

This proactive approach to compliance not only mitigates the risk of penalties but also instills confidence among stakeholders.

Real-Time Access to Data

Gone are the days of waiting for quarterly reports to make informed decisions. Equity management software offers real-time access to data. It allows businesses and their stakeholders to track the performance of equity plans at any moment.

This immediate access empowers decision-makers to act swiftly and strategically, leveraging the latest insights to drive the company forward.

Improved Transparency and Stakeholder Engagement

Transparency is the currency of trust in the business world. By providing stakeholders with direct access to their equity information, these platforms enhance transparency and foster a deeper sense of engagement.

Employees, investors, and board members can easily view their holdings, understand their value, and track their growth over time, which can boost morale and incentivize performance.

Scalability for Future Growth

As businesses evolve, their equity management needs grow with them. Equity management software is designed to scale, accommodating new users, additional types of equity, and expanding regulatory requirements with ease.

This scalability ensures that companies can continue to manage their equity effectively, no matter how complex their structures become.

Streamlined Reporting and Analysis

With built-in reporting and analysis tools, equity management software enables companies to generate comprehensive reports with a few clicks.

These insights can be pivotal for strategic planning as they present a clear picture of the company’s equity landscape, identifying trends, and informing future equity allocations.

Cost Savings Over Time

While implementing equity management software requires an initial investment, the long-term savings are significant. By automating manual processes, reducing errors, and minimizing compliance risks, companies can save on administrative costs, legal fees, and potential penalties. These savings, coupled with the efficiency gains, make it a wise investment for the future.

Best Equity Management Software

Coming to the crux of this article, the list of best equity management software programs we have selected isn’t just any list you’ll find on the internet. We have taken into account various factors, such as reviews, ease of use, features included, price, etc. to curate this list so that our readers can select the best out of the lot.

So, without further ado, let’s take a look at the best equity management software programs companies are using in 2024:

1. Carta

Pricing: Starts from $2,800 annually. Three different packages available.

Kicking things off with Carta, this platform stands out as a titan in the world of equity management. It caters to a broad spectrum of needs, from equity management and fundraising to compliance, serving businesses big and small.

That said, for startups just finding their footing, Carta's extensive array of features might feel like navigating a maze – possibly more than what's immediately necessary.

Why Choose Carta?

• Carta keeps your equity issuance thoroughly updated, including all relevant details.
• It empowers you to monitor scheduled vesting events and facilitates the digital processing of securities.
• With Carta, board approvals transition smoothly through its intuitive app, enhancing the management of documents and board checks retrieval.
• It's equipped with ready-to-use 409A valuation templates and essential documents for board clearance.
• Safety and security are paramount when it comes to certificate management, and Carta addresses this by storing certificates in a highly secure vault.

Considerations

• Initial engagement with Carta requires a conversation with their sales team, and setting up, not to mention getting around the software, can be daunting for the uninitiated – making it less than perfect for startup ventures.
• While Carta marks its presence in several countries, its roots are most deeply entrenched in the U.S. legal, regulatory, and tax frameworks. This localized depth means if your operations fall outside these areas, it might not fully meet your equity management needs.
• Carta's pricing model scales with the extent of services utilized and other factors. For smaller outfits or those just beginning their journey, this pricing structure could add up.

2. Capshare

Pricing: Lite version available free of cost, Pro version starting from $3/month/shareholder. Free trial also available.

Capshare stands as a versatile platform crafted to support companies, legal professionals, and investors in the intricate management of stocks, equity, dilution, and ownership stakes. It positions itself as a pivotal management hub as it offers users the ability to oversee and track their equity investments efficiently while accessing crucial stock information.

It ensures that only authorized users gain access, empowering them with the visibility to make informed investment decisions. Its popularity is evident, with over 10,000 organizations globally trusting Capshare for their equity management solutions.

Why Choose Capshare?

• Capshare is a flexible software program as it provides a scalable solution that adapts to your business's evolving needs, whether your operations are straightforward or complex.
• With the capability to manage shareholders, compliance documents, certificates, equity, and cap tables remotely, Capshare eliminates the hassle of manual processes, freeing up valuable time.
• Capshare prides itself on offering exceptional support with a team of experts readily available to address any concerns or questions.

Considerations

• While Capshare is praised for its customer support, ensuring that the platform is properly set up to provide real-time reporting and all the detailed tracking and management capabilities it offers could require a significant initial investment in time and resources.
• The software comes with a "Free-forever" plan but more comprehensive needs such as 409A Valuation and unlimited ASC 718 reports come with additional costs.

3. Shareworks

Pricing: Starts at $3 per month.

Next up on the list of best equity management software is Shareworks, an advanced equity management solution crafted to assist in overseeing restricted stock units and employee stock purchase plans.

This platform excels in both domestic and international settings, making it perfectly suited for organizations with a global footprint. It offers employees a comprehensive outlook on their vesting schedules, the value of their stocks, and options for releases, among other benefits.

The software is packed with essential features for efficient equity management. It includes safeguards for employees during blackout periods and the facilitation of share sales and holdings via automated release mechanisms. Additionally, it allows for the setting of default release elections upon the arrival of vesting dates.

Why Choose Shareworks?

• Tailored for both mid-sized and large companies, it is versatile enough to accommodate the needs of businesses that have a presence beyond their home countries.
• Shareworks ensures the security of shareholders by preventing trading within the platform during blackout periods. This makes it an excellent resource for publicly traded companies.
• The system's intuitive design simplifies the process of stock management and keeps users informed about share distribution.
• The integrated analytics provide stakeholders with detailed insights into the performance of their investments, including the valuation of current and prospective options.

Considerations

• Since there’s no trial available, you have to purchase the subscription to test it.
• Reviews suggest that the system can be slow for large caps.
• The interface isn’t exactly very easy to use. Users have reported facing problems using Shareworks.

4. Gust Equity Management

Pricing: NA – Free Trial Available After Sign Up

Gust Equity Management is a comprehensive program that’s designed to streamline the process of managing a company's capital structure. It transitions the cumbersome task of maintaining cap tables and related documentation from spreadsheets to a more efficient, automated system.

Shareholders can effortlessly track option grants, equity issues, forfeitures, vesting timelines, and board approvals, minimizing the reliance on expensive legal counsel. This platform comes equipped with all the necessary tools for cap table management, offering significant savings on legal expenses.

It includes the capability to request 409A valuation reports, which are crucial for issuing option grants at fair value, thus safeguarding companies and their employees against potential tax issues. Additionally, the software features a time-hop function. This enables users to view the capitalization status at any chosen moment.

Why Choose Gust Equity Management?

• It supports companies through all stages of funding, managing elements such as option grants, forfeitures, equity issues, and vesting dates.
• By facilitating 409A valuation report requests, the software aids in issuing option grants at appropriate valuations, helping to avert tax penalties.
• Its round modeling feature provides insights into dilution impacts from convertible notes and upcoming equity financing rounds.
• It allows for the real-time tracking of capitalization, offering employees the flexibility to monitor equity vesting as needed.

Considerations

• Reviews point out that Gust falls short in providing advanced analytics and visualizations, which some of its competitors offer.
• As a packaged software solution, Gust may not offer the level of customization that some startups might require, especially those with unique or complex equity management needs.

5. Certent Equity Management

Trusted by many, Certent Equity Management enables businesses to manage equity grants and awards effectively while adhering to relevant regulations. It features an integrated accounting suite for accurate expense calculations for each equity award, thereby simplifying the equity management process by facilitating easy uploads of new grants.

The platform enhances operational efficiency by making equity management more straightforward, eliminating the need for extensive technical know-how and the cumbersome use of spreadsheets. This enables a more efficient and smarter work process.

Why Choose Certent Equity Management?

• Certent boasts a dedicated customer support team ready to assist users, ensuring they fully leverage the system's features for maximum benefit.
• It simplifies equity reporting, including compliance with ASC 718, enhancing accuracy, minimizing risks, and streamlining reporting processes.
• The system optimizes the management of ESPP programs by simplifying eligibility, enrollment, and purchase requirements, coupled with improved communications and reporting mechanisms.

Considerations

• One notable issue is the broker interface, particularly for performance shares, which is seen as lacking functionality.
• Integration challenges have been reported, especially regarding the HR and payroll components.
• Users have noted manual tasks are still necessary, such as updating termination statuses or new hire information, which can add to administrative burdens.
• Another concern raised pertains to the software's limited flexibility in customization and reporting.

6. Ledgy

Pricing: €3 per stakeholder/month. Free plan also available.

Ledgy offers a comprehensive suite of investment management features beneficial for any business, including fund, portfolio, and compliance management, along with performance metrics and benchmarking. It provides exceptional live support, and in-person, and live online training, enhancing its user-friendly appeal.

As a cloud-based solution, Ledgy grants anytime, anywhere access, ideal for the dynamic schedules of investment managers. Its standout feature is the free version, catering to budget-conscious businesses seeking a powerful investment management platform.

Why Choose Ledge?

• Includes live assistance and a range of training options, both online and in person.
• As it is cloud-based, Ledgy ensures access to the system from anywhere, at any time.
• Provides a cost-effective solution for those seeking a robust investment management platform without the expense.

7. Global Shares

Global Shares offers a 360-degree equity management solution that doubles as payroll and compensation reporting software. It boasts user-friendly operation for all equity administration needs without requiring intensive training.

Additionally, it functions as a secure document storage system, ensuring easy and secure access to your records.

Key features of Global Shares include efficient portfolio management, both public and private equity management, and a participant portal, facilitating streamlined equity management processes.

Why Choose Global Shares?

• Streamlines the administration of employee share ownership plans, ensuring compliance with current regulations.
• Access to a highly knowledgeable team of equity professionals, with support available in multiple languages.
• Empowers businesses to offer and manage employee shares on a worldwide basis, offering real-time share dealing from any location.

Consideration

• For those seeking advanced payroll capabilities, turning to specialized payroll software might be advisable.

8. Capdesk

Pricing: $64.99 for starter package. Free basic version also available.

Wrapping up the list of best equity management software, Capdesk works by simplifying equity plans and ensuring compliance with confidentiality requirements. It notably reduces legal costs by managing equity records and documents according to best practices.

The software facilitates the structuring of share grants and the accessibility of exercise and vesting processes, ensuring accurate management of exercises and grants. Key features include automated reporting, cap table management, automatic audit trails, and the structuring of equity and documents, streamlining the equity management process.

Why Choose Capdesk?

• It provides real-time access for companies and employees to manage their equity.
• It minimizes manual input by automating processes.
• It streamlines the structuring process in compliance with best practices.
• It reduces manual calculation errors through automation.

Considerations

• Users have noted some drawbacks, including its price, which some find high without fully utilizing all available features.
• Users also mentioned a quirky user interface and a somewhat cumbersome process for setting up new bearers.

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