Human management

YC grad QuotaBook raises $11M to scale its stock management platform – TechCrunch

QuotaBook, a Seoul-based equity management platform, raised $11m in funding led by Elefund, with participation from Access Ventures, Hana Securities and South Korean fintech firm Viva Republica. Some of its former backers, including Draper Associates and Capstone Partners, have joined the round.

The Korean startup, a graduate of Y Combinator’s (YC) Winter 21 class, was founded by former venture capitalists Andy Choi, Dan Hong and Pilson Junein 2019. Choi, CEO of the company, said in an interview with TechCrunch that as investors, the three noticed that in Korea and many other Asian countries, startups still relied on Excel to manage their capitalization tables, stock options, stakeholder and other related information.

This meant that startup backers were also forced to make sense of these spreadsheets. “VCs were stuck with excel sheets or very old enterprise resource planning (ERP) tools, so old they’re not web-based and can only be installed on Windows machines,” said said Choi. “This created a very tedious and error-prone process where startups and investors routinely exchanged crucial stock data and company information via email attachments or text messages.”

Everyone was typing the data manually because investors and startups had different formats and again had to double check each side, Choi told TechCrunch.

“I had a case where the startup failed to provide its most up-to-date capitalization table excel sheet for over two months, which made it difficult for us to update our investment valuations and returns that needed to be reported to our LPs,” Choi said.

QuotaBook will use the latest funding – which brings its total raised to approximately $20 million – to digitize the equity/fund management process, providing a common standard for security-related data and enabling secure hosting. secure online shareholder and board meetings. Additionally, the startup plans to expand its product team, enter Southeast Asia and launch its service for investors in the Middle East, Choi noted. “The [Asian] The market is still very young, so we also want to create local offices or teams in regions like Vietnam, Indonesia, Singapore and Taiwan.

Currently, the company employs 45 people, Choi added.

Picture credits: QuotaBook

QuotaBook claims that it has more than 3,500 startup and investor users on its platform, mostly based in South Korea, where the company started. According to Choi, about 40% of startups in Korea use QuotaBook’s service that provides cap chart management. In June, it launched a restricted stock unit (RSU) management service.

Its platform in SaaS mode offers two services: an equity management service for startupswhich includes management of the capitalization table, management of stock options, investor reports, investor consents, shareholder and board meetings, and a fund management platform for investorswhich provides fund information, investment and return management, portfolio management, LP commitment and return management, LP reporting and analysis of fund activity.

Its first-time users start with a freemium plan. If they upgrade to a plan with more features, they’re charged based on the number of stakeholders, like stock and stock option holders, Choi said. Investors are also charged based on the AUM of their funds and the number of wallets.

QuotaBook also recently launched a communication platform called QuotaSpace which focuses on communication and networking between investors and their portfolio companies. Choi said more features are coming as well.

“Once our core business stabilizes, we plan to expand into new business opportunities with the network and data we cover. Helping with secondary sales and providing data services are some examples,” he said.

QuotaBook did not provide its rating when asked. The startup raised its previous funding in June 2021 from Draper Associates, Carta Ventures, Elefund, Goodwater Capital and Scale Asia Ventures.