QuotaBook, a Seoul-based fairness administration platform, has raised $11 million in funding led by Elefund, with participation from Entry Ventures, Hana Securities and South Korean fintech firm Viva Republica. A few of its earlier backers, together with Draper Associates and Capstone Companions, joined the spherical.
The Korean startup, which graduated from Y Combinator (YC)’s Winter 21 batch, was based by former enterprise capitalists Andy Choi, Dan Hong and Pilseon Jun, in 2019. Choi, the corporate’s CEO, stated in an interview with TechCrunch that of their capability as traders, the three seen that in Korea and lots of different Asian nations, startups had been nonetheless counting on Excel when managing their cap tables, inventory choices, stakeholder and different associated data.
That meant the startups’ backers had been pressured to make sense of those spreadsheets, too. “VCs had been caught with Excel sheets or very outdated enterprise useful resource planning (ERP) instruments, so outdated that they don’t seem to be web-based and could be put in solely on Home windows machines,” Choi stated. “It created a really annoying and error-prone course of the place startups and traders had been commonly exchanging essential fairness information and company information through doc attachments or textual content messages.”
Everybody was typing within the information manually as a result of traders and startups had completely different codecs and needed to run double checks from either side once more, Choi informed TechCrunch.
“I had a case the place the startup didn’t present their latest cap desk Excel sheet for greater than two months, which made it onerous for us to replace our funding valuations and returns that had been wanted to be reported to our LPs,” Choi stated.
QuotaBook will use the newest funding — which brings its complete raised to roughly $20 million — to digitize the fairness/fund administration course of, offering a typical commonplace for security-related information, and making it doable to securely host shareholder and board conferences on-line. Moreover, the startup plans to scale out its product group, enter Southeast Asia and launch its service for traders within the Center East, Choi famous. “The [Asian] market remains to be very younger, so we additionally wish to arrange native places of work or groups within the areas like Vietnam, Indonesia, Singapore and Taiwan.”
At present, the outfit employs 45 individuals, Choi added.
QuotaBook claims that it has greater than 3,500 startups and investor customers on its platform, largely primarily based in South Korea, the place the corporate began. About 40% of startups in Korea use QuotaBook’s service that gives cap desk administration, in accordance with Choi. In June, it launched a restricted inventory models (RSU) administration service.
Its SaaS-based platform presents two companies: an equity management service for startups, which incorporates cap desk administration, inventory choice administration, investor reporting, investor consents, shareholder and board conferences, and a fund management platform for investors, which gives fund information, funding and returns administration, portfolio administration, LP dedication and returns administration, LP reporting and fund exercise analytics.
Its startup customers begin with a freemium plan. In the event that they improve to a plan with extra options, they get charged by the variety of stakeholders, like holders of securities and inventory choices, Choi stated. Traders additionally get charged primarily based on the AUM of their funds and the variety of portfolios.
QuotaBook additionally not too long ago launched a communication platform known as QuotaSpace that focuses on the communication and networking between traders and their portfolio firms. Choi stated extra options are coming, too.
“As soon as our core enterprise settles down, we plan to broaden into new enterprise alternatives with the community and information we cowl. Serving to out with secondary gross sales and offering information companies are just a few examples,” he stated.
QuotaBook didn’t present its valuation when requested. The startup raised its earlier funding in June 2021 from Draper Associates, Carta Ventures, Elefund, Goodwater Capital and Scale Asia Ventures.