Decoding Liquidity Programs for Private Markets with Skanda Jayaraman, CEO of Qapita Marketplace
Welcome to this special edition of Fables Of ESOP. In this we seek to deconstruct the basics of liquidity programs for you.
Quite a few start-ups have witnessed big investment opportunities slipping out of their hands due to lack of proper organisation when it comes to Cap Table and ESOP management in their organisations. Vikram Sivaraman, an ex-investment banker and ex-CFO of an e-commerce start up, having witnessed this plight of Start-ups, now works with QAPITA team to bring order to this complicated process of maintaining ownership records by leveraging technology. Vikram, QAPITA’s Country Head, talks about Equity Management and QAPITA’s vision.
The Problem to be solved
Lack of Right Advisory
Delaying things that we don’t understand comes naturally to us. Most start-ups put off creating ESOP pool and setting up their ESOP scheme due to their inability to find the right advisors or fully understand the scheme. This eventually leads to a delay in funding because investors expect the companies to be compliant with ESOP structure before they begin their investment
Delay in ESOP Liquidity
ESOP delayed is ESOP denied. Employees need to go through a very long waiting period for their ESOPs to bear fruit and generate actual tangible wealth. Companies usually take about 10-15 years for it to go public and any kind of transactions to happen with regards to ESOPs, which causes employees to doubt the real worth of ESOP programs
QAPITA to the rescue
Three words – Technology, Technology and Technology
Finance functions has not seen enough technological intervention in the past 10-15 years. QAPITA intends to change this by leveraging technology to increase efficiency and transparency in Private Capital Market functions (which includes VC fundraise process, Investors relations management, ESOP Management and then, ultimately, liquidity to ESOP-holder and share-holders)
QAPITA starts with first organising company’s ownership records using their Cap Table and ESOP Management solution. And once the ownership records of several unlisted companies and private companies have been well organised, QAPITA intends to host a tech-enabled market place where buyers and sellers of private company stocks can carry out transaction, enabling ESOP Liquidity
QAPITA’s vision is to facilitate structured liquidity where companies can announce liquidity programs on periodic basis wherein QAPITA will provide the efficient software tools and also find buyers for their shares and ESOPs.
QAPITA’s Solution Seekers!
Start-ups in all size and forms can leverage QAPITA's solution.
Early-stage start-ups with just 5-6 shareholders and 3-4 ESOP holders, use QAPITA’s platform from the time they have set up the company or raised their first round of funding to stay due diligence ready. Mid-Stage and Late-Stage Start-ups, who may have their own finance team to manage their ownership, also see value in having QAPITA’s product support to run it better. And as companies scale, their ESOP holding population scales thereby making ESOP record maintenance on Excel sheets extremely cumbersome. QAPITA, has you covered.
All Start-ups, across spectrum, see value in what QAPITA offers for Employee engagement and motivation. QAPITA uses tools to communicate the current and future value of ESOPs to their holders which enable them to make a more informed decision regarding their stock options.
Why QAPITA?
Because QAPITA has the best team and the best product!
QAPITA is a relatively new entrant while there are companies in western market which have been operating for 7-8 years, yet, QAPITA thrives. The nature of the service is such that regional focus is critical in building a powerful product as it necessitates close linkage with local laws & regulations, documentation & procedures. QAPITA’s focus on India & South-East Asia gives them a competitive edge in these locations.
QAPITA has built a powerful product. On Cap Table Management front, the powerful set of scenario analysis tools provided to model next round of funding or exit and the depth and detailing involved in data capturing and document storage to make companies due diligence ready, differentiates QAPITA from its competitors. On the ESOP Management front, Employee engagement functionality, communicating the present and future value of their ESOPs is unique to QAPITA.
And it's not just a software solution that QAPITA offers, QAPITA goes beyond its way to ensure that the customers see maximum value in their product by offering advisory on ESOP scheme setup, benchmarking ESOP scheme to best practices and giving a sense of what companies of similar scale are doing etc.
For the future road map, QAPITA is working on additional tools which will be of relevance to the HR and Finance team. Ultimately, QAPITA intends to operate as a suite of products which has extensions that cater to company secretary, compliance extensions, employees, management and industries as well.
Let's Talk Equity!
Visit the demo request page right away and demand a demo! QAPITA team will get back to you in no time and demonstrate the product to you. There is a Freemium model available for free to early-stage start-ups operating withing a certain threshold of share-holder & ESOP-holder size.
And beyond that, QAPITA offers competitive rates. Signup now!