Yin Wu, cofounder of Pulley, which builds software for managing cap tables, spent much of this week replying to founders who asked how hard it is to switch from Carta. “It’s not,” she tweeted. Shoobx, Fidelity’s horse in the race, is fielding a rise of inquiries from the startup community in recent weeks, according to a source with knowledge of the company’s sales. Meanwhile, AngelList is courting founders away from Carta by comping companies the number of months left on their Carta subscription.
This was something new for Carta: a raft of companies jostling for a piece of its market share and succeeding. When it launched in 2012, Carta sought to replace the Excel spreadsheet for tracking and issuing equity shares. It mopped up customers as the only game in town. Even as a new crop of companies entered the ring, Carta stayed the default for many startups. Founders told us their lawyers preferred it, or they didn’t want the hassle of switching software.
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