ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

South Korean Firm QuotaLab on Track to Become the 'Carta' of Asia's Cap Table Management

QuotaLab is ready to move from Software to Finance.
PUBLISHED MAR 7, 2024
Cover Image Source: Korean Finance | QuotaLab Website
Cover Image Source: Korean Finance | QuotaLab Website

South Korean firm QuotaLab is aiming to follow in the footsteps of Carta, a popular cap table management platform in the US. Founded in 2012 under the name "eShares," Carta provides companies with a tool to handle the distribution of equity to their staff members and investors. Its offerings have grown over time to include a wider range of financial management duties, including risk assessment, bookkeeping, stock management, valuation, and brokerage services.

Image Source: Photo by Pixabay | Pexels
Image Source: Photo by Pixabay | Pexels

The company also featured a marketplace where investors could exchange startup shares, but a few issues caused it to dissolve earlier this year.

QuotaLab, which came out of Y Combinator, began as an equity management program called QuotaBook for South Korean investors and startups. By incorporating LogosSystem, an investor fund management service, the firm aims to establish a comprehensive platform for Korean startups and investors. This involves providing all the necessary resources for efficiently managing finances, stocks, assets, and relationships with limited partners, all in a single, centralized location.

Andy Choi, the CEO and co-founder of QuotaLab, revealed that although the company started as a software developer, they are currently considering a move into the banking industry. As the only player in the limited partner sector, they hold 80% of the venture capitalist market and 40% of the startup market. "We’re basically the financial infrastructure powering the Korean venture ecosystem. We’re looking into what financial businesses we can pursue," he told TechCrunch.

Image Source: QuotaLab Website
Image Source: QuotaLab Website

Former venture investors Choi, Dan Hong, and Pilseon Jun launched QuotaLab to make investment management easier for general partners (GPs). To strengthen their position in the South Korean venture capital market and integrate the startup-to-investor-to-LP ecosystem, they paid $23 million to purchase LogosSystem.

This came more than a year after a $11 million fundraising campaign. "For GPs, the [LogosSystem] platform provides functionalities for managing their funds, including LP management, like LP info, contact points, commitments, capital calls, distributions, reporting, etc. It also offers investment management such as investments, returns, asset changes, markdowns, valuations, accounting, e-approvals, and risk management," Choi added.

LogosSystem allows limited partners (LPs) to manage their fund of funds and related assets. Choi mentioned that BlackRock's eFront offers similar features. He explained, "For example, an equity management platform that focuses solely on startups without considering investor needs won't succeed where investors have significant decision-making power."

Furthermore, equity awards, such as stock options and RSUs, are more localized and regulated by various laws governing rewards, taxes, and appraisals.

 Image Source: d3sign/Getty Images
Image Source: Photo by d3sign | Getty Images

In essence, QuotaLab sees opportunities to improve stakeholder relations, providing specialized services for thorough securities data management, and catering to diverse equity award markets. While the plan isn't finalized, potential ventures could include a stock brokerage firm or a transfer agent. 

LP interactions will be streamlined by QuotaLab's integration of LogosSystem's investor fund management service into QuotaBook. To improve data synchronization, they are combining the sophisticated capabilities of LogosSystem with the portfolio company features of QuotaBook. Both platforms gain from the move, which also gives QuotaBook access to LogosSystem's investor base.

After acquiring LogosSystem, QuotaLab witnessed a leadership transition as the CEO of the acquired company left, with a seasoned staff member assuming the role. With 45 team members from LogosSystem retained, QuotaLab expanded its workforce to 75.

Image Source: Photo by Christina Morillo | Pexels
Image Source: Photo by Christina Morillo | Pexels

Despite the crowded cap table management market in Southeast Asia, the firm is poised to expand into the region, potentially competing with companies like Sprout and Qapita. Considering raising additional funds and exploring acquisition opportunities, QuotaLab has overcome early challenges, with investors, mid-sized companies, and corporations driving the majority of its revenue.

Furthermore, since 2022, the user base has grown from 3,500 to approximately 5,500.

MORE ON MARKET REALIST
Guests on the show would run with it if they ever got that kind of money on Pawn Stars.
17 hours ago
The guest even said to keep the kids in the dark about how valuable these items were.
19 hours ago
The company had fantastic sales but a crushing debt with a high interest rate that the sharks hated.
22 hours ago
It was only Carey's second season in the show and he could have been part of a massive scandal.
1 day ago
“I won’t say anything, and you know why,” he said, with a gesture to zip his lips.
1 day ago
The ring was rescued by the guest's mother thanks to a stranger early in the morning.
1 day ago
"She blanked out. It happens to the best of us," a fan sympathized with the player.
1 day ago
The instrument originally belonged to the guest's grandfather who suffered a horrific injury.
2 days ago
The contestant's wife seemed embarassed at that point of time, and worried as well.
2 days ago
The co-founders of Dino Don got the shark that they always wanted on board.
2 days ago
One can understand why the measure is in place but the shopper was having none of it.
2 days ago
"My husband and I definitely noticed it! We had to rewind it a few times," a fan reacted.
2 days ago
All of the sharks agreed that she had a great product and the drive to be successful a businesswoman.
3 days ago
It's possible that the dog played a little part in making it easier for them to get a deal.
3 days ago
Without the help of his wife, the contestant would have gone home empty-handed.
3 days ago
The pawn store owner had a valid point since the item the guest had brought had numerous issues.
3 days ago
The contestant got the first part of the puzzle right but wasn't able to solve it in time.
3 days ago
"It's a lady's robe. A robe from 1750 is a very rare robe. The only other ones I know of this type, you'd have to go to Beijing," the appraiser said.
4 days ago
Harvey also got other hilarious answers, but nothing could match the woman's sass.
4 days ago
The Gronkowski family is famous for their contributions to America's sporting culture.
4 days ago