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.

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.
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.