By Luciana Lixandru and Zoe Hewitt on behalf of Team Sequoia
We’re delighted to announce our partnership with Ledgy after leading their $10M Series A funding round.
The European tech ecosystem has been flourishing over the past few years. Founders have access to more talent and capital than ever before to pursue their dreams, but they are still stuck in spreadsheets to manage their cap tables and employee shareholdings.
As startup activity and VC funding continue to grow on the continent, it’s past time for European companies to have a modern equity management platform at their disposal.
With multiple jurisdictions, the European market requires a product that is country-agnostic. The three co-founders of Ledgy — Yoko, Timo and Ben — knew this all too well, and designed Ledgy to be geo- and jurisdiction agnostic from the start. Having experienced firsthand the painful and error-prone process of working without an equity management platform, the trio created a product that helps leaders to manage their cap table and equity plan, and employees understand their grants and track valuations. They also created a product that delights its users with simplicity and ease of use.
Ledgy couldn’t have come at a better time. Nine months in, 2021 has already seen record VC investment in Europe. European stock option regulations, which have stagnated since the first dotcom boom, are finally beginning to see favorable reforms. Lastly, remote hiring has become the norm, and managing options in various jurisdictions is nothing short of painful. As these forces dovetail, there will be more companies raising funds and needing help with complicated stock-based compensation than ever.
At Sequoia, we believe equity ownership is not only important for aligning incentives between founders and investors, but crucially it drives alignment across the entire organization when employees are made owners. Owners drive better company outcomes. Equity grants that are easy to interpret will continue to give early stage companies an advantage in attracting and retaining the best talent in the market. Communication around stock options shouldn’t be complicated. A clear equity story can create an edge in an ultra-competitive talent market.
Ledgy is already winning customer love, and has seen adoption across industries. Companies including Trade Republic, Bitpanda, Gorillas, Kry, and Raisin are current customers. Employee shareholders love the intuitive interface, which helps them better understand their holdings. CFOs, Heads of People and lawyers love that it integrates with other HR systems and third parties involved in equity management, creating a single point of truth.
The startup opportunity is blossoming in increasingly diverse markets. Yoko, Timo and Ben are poised to make the best product for the continent and beyond.
