Is your startup struggling to meet the needs of investors scattered across the globe? Such problems are common when your investors are from entirely different jurisdictions, such as the USA and Hong Kong. For instance, in the US, the capital gains tax rate depends on both the income level and the holding period; however, Hong Kong does not have a capital gains tax. As a result, the tax filing needs of investors in these two jurisdictions are entirely different.
Another key difference is that US term sheets typically provide for liquidation of preferred shares at their original purchase price plus any accrued dividends. In contrast, Hong Kong term sheets often allow liquidation of such shares at a multiple of the original purchase price.
To address the diverse needs of investors and effectively manage critical events such as liquidity events, comprehensive cap table solutions with robust exit modeling and integrated tax filing support are essential. Hence, in this article, we will compare the three best cap table providers for cross-border startups.
What is a Cap Table & Why Is It Crucial?
Traditionally, cap tables were spreadsheets that provided a detailed overview of the ownership structure. These documents listed all stakeholders and their respective shareholdings. Spreadsheets were unable to keep up with the growing complexity of startup equity structures.
As convertible securities, such as SAFE notes, gained traction, errors in equity tracking became more common. Startups also realized the limits of spreadsheets when using equity to hire talent or manage global operations.
The Modern Solution
In response to these bottlenecks, dedicated cap table software had to be developed. On these platforms, in addition to tracking ownership, you could manage ESOPs, issue securities, manage board proposals, and do much more.
To address these challenges, cap table platforms have introduced advanced features such as funding round modeling and waterfall analysis. These tools help founders visualize dilution from new rounds and forecast exit distributions based on shareholder rights.
Why is a Dedicated Cap Table Provider Essential for HK & US Startups?
A dedicated cap table provider can allow Hong Kong and US startups to tackle the following challenges effectively:
Ensuring Accuracy & Compliance Across Borders
US and Hong Kong startups are required to maintain a record of shareholding. In Hong Kong, the fine for inaccurate records can be HK$25,000 plus HK$700 for each day during which the inaccuracy continues. Additionally, general failure to maintain proper business records can result in fines up to HK$100,000. Inaccurate records can cause misunderstandings and disputes, underscoring the need for cap table software.
In the US, if you do not establish your company’s fair market value (FMV) using a 409A valuation, you could expose your ESOP participants to a 20% penalty tax.
Streamlining Fundraising Efficiency & Boosting Investor Confidence
An accurate cap table that displays each stakeholder’s equity and anti-dilution provisions, as well as all option pools and convertible securities, is crucial for conducting a thorough dilution analysis.
Cap table platforms address this need by offering real-time, audit-ready ownership records. During due diligence, startups can grant investors temporary access, avoiding manual errors. And since dilution concerns continue long after funding rounds close, a reliable, up-to-date cap table fosters ongoing stakeholder communication and trust.
Empowering Strategic Scenario Planning
Equity is one of the most powerful tools for sustainable startup growth, but leveraging it requires navigating evolving ownership structures, dilution risks, and complex exit scenarios.
Modern cap table platforms provide clarity to founders and investors through advanced financial modeling features such as Round modelling, Waterfall analysis, and Stock option pool modelling. It helps you visualize the dilution impact of stock option pools.
With these tools, cap tables transform into strategic dashboards. They can equip you with the foresight to make informed decisions, avoid costly mistakes, and align stakeholder interests from day one.
Simplifying ESOP Management for Global Talent
Managing ESOPs is complex, and the challenge intensifies when startups use equity to attract global talent. This complexity can lead to costly errors, inefficiencies, and strained employee relationships.
Cap table providers offer automated ESOP management for startups by:
- Tracking vesting in real-time across multiple schedules.
- Streamlining option grants, exercises, and record-keeping for accuracy and transparency.
- Supporting compliance with tax regulations, such as 409A valuations and 83(b) elections in the US.
By automating ESOP processes, startups can reduce administrative overhead, minimize risks, and devote more energy to scaling their business.
Fostering Transparent Stakeholder Communication
Cap table platforms allow startups to grant controlled access to shareholders, employees, and advisors, ensuring each stakeholder can view the information relevant to them. As a result, stakeholders can track holdings, understand dilution, and visualize funding round impact. Thus, role-based access fosters clarity and reduces the chances of disputes.
For global teams, a centralized platform harmonizes communication across jurisdictions, bridging differences in regulations and market practices.
Top 3 Cap Table Providers for Cross-Border Startups
Now that we have established the importance of cap tables, let us explore the top 3 alternatives for cross-border startups.
Eqvista
Eqvista stands out as a cost-effective and user-friendly platform, best suited for both startups and established companies. Eqvista’s cap table management features real-time updates, intuitive dashboards, easy onboarding, and access to essential features, such as 409A valuation services and 83(b) filings, at significantly lower prices, approximately 70% less than our competitors.
Eqvista also supports a seamless migration from other platforms and offers special incentives, including a complimentary service for the remainder of the subscription period.
Carta
Carta is widely recognized for its comprehensive features suitable for large enterprises. It offers advanced tools; however, Carta has a reputation for being expensive with high SaaS fees, making it unaffordable for many startups, especially given that most startups fail or get acquired within a few years.
Despite being a dominant player, Carta ranks relatively low on customer satisfaction comparison platforms compared to its competitors, indicating that user experience issues may prompt customers to seek alternatives. The product’s large-scale ambitions may not align well with the private markets they currently serve.
Mantle
Mantle is a newer, AI-native cap table management platform designed primarily for North American startups, particularly in the US and Canada. It offers accessible, AI-augmented cap table management with founder-friendly pricing and robust compliance and planning tools tailored especially for early-stage to growth-stage North American startups.
However, it remains more regionally focused and less established compared to competitors like Eqvista and Carta, making it a strong option for startups aligned with its target market but potentially less suitable for global or highly complex equity needs.
Comparing Features of Cap Table Providers
Here is the comparison table for the cap table management providers Eqvista, Carta, and Mantle, highlighting key features, pricing, and target users.
| Provider | Eqvista | Carta | Mantle |
|---|---|---|---|
| Pricing | Freemium plan available for up to 20 shareholders; $2 per shareholder per month (Premium); Significantly lower costs (~70% less than Carta) | From $280/year for up to 25 shareholders; Medium around $4,550 annually; Premium plans are higher-priced | Limited pricing info publicly available |
| Target Market | Startups, SMEs, and growing companies | Large enterprises and companies with complex equity structures | Not clearly defined, appears less established |
| Usability | User-friendly, simplified onboarding; easy migration and setup | Comprehensive but more complex interface; can be overwhelming for smaller companies | Not clearly defined, appears less established |
| Equity Management | Real-time cap table tracking, unlimited 409A valuations, 83(b) filings, form 3921, ASC 718 expense reporting | Advanced equity management tools, automated ACH and wire transfers, and audit support | Not mentioned |
| Additional Benefits | Free migration assistance; free service period for Carta users switching; strong customer support | Industry-standard platform; broad adoption; strong compliance features | Not mentioned |
| Suitable for | Cost-conscious startups and growing companies looking for a comprehensive yet affordable solution. | Large enterprises needing a robust, compliant, and feature-rich platform | Not mentioned |
Final Thoughts: Eqvista works well for startups and companies that want affordable, simple, and scalable cap table management with all the key features. Carta stands out as a full-featured, enterprise-level option, albeit at a higher cost. Mantle still needs more research before a full review, but for now, it may not be as strong as the others.
Ready to Find the Cap Table Platform That Fits Your Startup Best?
Founders searching for the right cap table solution should prioritize platforms that offer transparent pricing, ease of use, scalability, and compliance management — all strengths of Eqvista. Additionally, smooth migration support is crucial for minimizing disruptions, a service that Eqvista actively provides. While Carta offers advanced features suitable for complex equity structures, its high prices and complexity often exceed the needs of early-stage ventures.
Seeking expert advice and streamlined startup support for cap table management and business incorporation? Contact Startupr Hong Kong Limited. Our knowledgeable team offers personalized assistance, including company formation, compliance advice and operational support.
