USD 602.1 million
Report ID:
SQMIG45E2355 |
Region:
Global |
Published Date: May, 2025
Pages:
199
|Tables:
149
|Figures:
78
Global Equity Management Software Market size was valued at USD 602.1 million in 2023 and is poised to grow from USD 674.95 million in 2024 to USD 1683.14 million by 2032, growing at a CAGR of 12.1% during the forecast period (2025-2032).
The landscape of Equity Management Software is now rapidly shifting due to the explosion of venture capital, interest in IPOs, and the demand from both budding and mature companies wanting their cap tables to be managed digitally. As the number of unicorns globally has recently reached more than 1,400 in Q1 2025 according to CB Insights, many companies are facing the need for equity management solutions to simplify complex ownership structures and regulatory compliance as well as ESOPs. Self-serving government agendas that promote startup ecosystems, such as India’s Startup India program or the U.S. SEC modernization of Rule 701 on the disclosure of equity compensation, are also increasing this tendency to adopt such software.
However, the market also has some major restraints. The EU’s GDPR and California’s CCPA represent compliance nightmares, particularly for cloud-based platforms dealing with sensitive ownership data. Additionally, mid-size enterprises may struggle to quickly embrace this technology due to difficulties associated with integrating it into existing legacy financial systems and the absence of standard data formats. Cost remains a barrier for early-stage startups, despite the long-term value proposition of the software.
A significant driver is the increasing number of private equity portfolio companies that have to maintain transparency around ownership. As stated by PwC’s 2024 Private Equity Report, global PE assets under management, or AUM, reached over $12 trillion and more firms are requiring better control and compliance behind centralized digital records of owner’s equity. On top of that, the increase in remote work and distributed teams, has helped fuel global adoption of real-time cloud-based ESOP tracking and cap table management platforms.
In response to these dynamics, leading players are expanding feature sets and acquiring niche tech startups to enhance product offerings. For instance, in 2023, Carta acquired Vauban, a UK-based equity management platform, to bolster its international presence and capabilities for venture capital clients. Similarly, Ledgy, a Swiss firm, secured $22 million in Series B funding in 2024 to expand its global product offerings with enhanced multi-entity compliance features.
How is Blockchain Revolutionizing Equity Ownership Tracking in the Event Management Software?
Blockchain technology is redefining how equity ownership is recorded, managed, and verified by providing a secure, immutable, and transparent digital ledger system. This becomes particularly important in the case of private companies, where the complexity of the cap table tends to build up very quickly with rounds of financing, employee stock options and secondary sales. Blockchain allows companies to timestamp and authenticate all transactions without having to rely on a middleman. For example, Carta and tZERO have added features through the use of blockchain to their platforms to allow ownership records to be updated in real-time and streamline regulatory reporting.
Furthermore, the SEC’s insistence that private equity filings comply with the principles of transparency embedded in the 2023 Modernization of Beneficial Ownership Reporting rule also signals an overall harmonization between traditional public marketplace practices and private equity. In a 2023 article from Deloitte, it states that 40% of mid-sized private companies are currently testing or intend to test in the next two years, blockchain-based equity management, indicating an increasing interest from the sector.
Can AI-driven Automation Enhance Cap Table Management and Compliance?
Artificial Intelligence (AI) is playing a critical role in automating complex equity operations such as cap table updates, scenario modeling, and compliance tracking. Traditional equity management relies heavily on manual data entry, which increases the risk of errors and slows down investor reporting. AI algorithms, when integrated into equity management software, can automatically reconcile equity transactions, simulate dilution scenarios, and flag non-compliant entries in real time.
For Instance, Pulley launched its AI-enhanced cap table intelligence tool in 2023, enabling startups to run future financing simulations with predictive analytics. Furthermore, Shareworks by Morgan Stanley reported in its 2023 investor presentation that AI implementation reduced manual input errors by 35% and improved reporting speed by 50% across enterprise clients. According to a 2024 report by the U.S. Department of Commerce, the integration of AI in financial compliance tools is expected to reduce regulatory breach costs by 20% by 2026, demonstrating its strong value proposition in this domain.
Market snapshot - 2025-2032
Global Market Size
USD 602.1 million
Largest Segment
Software
Fastest Growth
Software
Growth Rate
12.1% CAGR
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Global Equity Management Software Market is segmented by Type, Application, Deployment, End-User Industry, Enterprise Size and region. Based on Type, the market is segmented into Basic, Standard and Senior. Based on Application, the market is segmented into Start-Ups, Private Corporations, Listed Companies, Financial Teams and Others. Based on Deployment, the market is segmented into Cloud-Based and On-Premise. Based on End-User Industry, the market is segmented into Banking & Financial Services, Insurance, Retail & E-Commerce, Manufacturing and Others. Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium-Sized Enterprises (SMEs). Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Based on deployment mode, the cloud-based segment has emerged as the dominant category in the Global Equity Management Software Market. This dominance is largely driven by the increasing demand for scalability, remote accessibility, cost-efficiency, and automated updates. With growing digitization and hybrid work models post-COVID-19, businesses—especially SMEs and fast-growing startups—are migrating to cloud-based equity platforms to streamline cap table management, employee stock option plans (ESOPs), and regulatory compliance. According to a 2023 report by Microsoft, over 92% of organizations globally have adopted cloud services in some form, which strongly supports the increasing preference for cloud-based equity management. Platforms like Carta and Pulley have significantly expanded their cloud offerings in recent years.
For instance, Carta reported a 53% YoY increase in cloud-based user accounts in 2023, serving over 40,000 companies. The cloud model also supports real-time data sharing among stakeholders, including investors, auditors, and legal advisors, making it more agile than on-premise solutions. Moreover, cloud-based platforms are increasingly integrating with AI tools to provide predictive insights and compliance alerts, making them an even more attractive choice for tech-savvy enterprises.
Among the various end users, the Startups segment is anticipated to witness the fastest growth during the forecast period. The surge in startup activity, especially in regions like North America, Europe, and Southeast Asia, is fueling demand for agile equity management tools. As of 2024, India surpassed 100,000 registered startups, according to the Department for Promotion of Industry and Internal Trade (DPIIT), while the U.S. saw over 5 million new business applications in 2023, according to the U.S. Census Bureau. Startups typically require lean, affordable, and cloud-native equity platforms to manage employee equity distribution, investor reporting, and multiple funding rounds.
For example, Pulley, a platform tailored for early-stage startups, reported a 70% increase in new startup signups between 2022 and 2023, driven by its intuitive cap table and fundraising tools. Additionally, government-led startup ecosystems such as Startup India and Y Combinator's global outreach have created a support structure that necessitates structured equity management from an early stage. As fundraising becomes more frequent and complex, startups are leaning on robust platforms to ensure compliance and transparency, thereby propelling the growth of this segment.
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North America dominates the equity management software industry, driven by a mature financial ecosystem, early adoption of SaaS technologies, and a surge in equity-based compensation programs. In 2023, over 55% of Fortune 1000 companies used digital equity platforms, according to NASDAQ reports. The region's strong regulatory infrastructure, including SEC compliance requirements and updates to Rule 701, drives demand for automated cap table and compliance tools. Additionally, venture capital funding in the U.S. reached $170 billion in 2023, fueling startup adoption of equity management tools to handle complex share structures.
The U.S. is the largest contributor to the equity management software market due to its dense concentration of public and private equity firms and startups. In 2023, Carta, a leading U.S.-based equity management firm, expanded its platform with a feature to automate 409A valuations—critical for pre-IPO firms (Carta 2023 Investor Letter). The SEC’s amendments in 2023 to modernize disclosures for equity-based compensation have increased the need for compliant digital tracking tools. With over 33,000 startups launched in 2023 (U.S. Census Bureau), the scalability of software platforms for equity distribution and compliance is in high demand.
Canada's equity management market is growing due to favorable tax policies and rising startup activity, particularly in fintech and biotech sectors. The Canadian Venture Capital Association (CVCA) reported that Canadian startups attracted CAD 11.7 billion in venture capital in 2023. In March 2024, Vancouver-based Shareworks by Morgan Stanley launched enhanced integration tools for Canadian tax-compliance in its equity plans, aimed at TSX-listed firms. Supportive government grants such as SR&ED credits further drive adoption of tools that simplify share issuance and reporting.
Europe is the fastest-growing region due to increasing startup activity, regulatory harmonization through initiatives like the EU’s Capital Markets Union, and growing popularity of employee stock ownership plans (ESOPs). The European Commission estimates that over 20% of SMEs plan to implement equity-based incentive schemes by 2025. Additionally, GDPR and MiFID II compliance is pushing firms toward digital solutions for secure and auditable equity tracking. Rising IPO activity, especially in tech hubs like Berlin and Paris, further propels software adoption.
Germany is experiencing rapid digitization of financial operations, including equity management. In 2023, the number of startups offering equity-based compensation increased by 15% (Bundesverband Deutsche Startups). Berlin-based equity platform Upvest announced new partnerships in 2023 to offer real-time cap table management for SMEs. Recent reforms in the Future Financing Act aim to simplify access to capital markets and ESOPs, further encouraging software adoption. Germany's growing startup ecosystem and policy changes are fostering increased demand for equity tracking tools.
France has emerged as a growth hub, driven by the government's “La French Tech” initiative and tax incentives for startup equity plans. In 2023, France had over 1,000 new tech startups, many adopting digital equity platforms to manage employee stock options and investor relations. In October 2023, Paris-based Equify introduced a GDPR-compliant equity management platform tailored for EU SMEs. Additionally, Bpifrance reported that 62% of French startups plan to expand their use of stock-based compensation over the next two years, highlighting strong demand for compliant equity management tools.
Post-Brexit regulatory autonomy has allowed the UK to innovate in equity policy, including reforms to the EMI (Enterprise Management Incentive) scheme, which now offers broader eligibility and increased grant limits. In 2023, SeedLegals, a UK-based equity software provider, reported a 30% YoY increase in SME users. According to HM Treasury’s March 2024 report, equity-based compensation participation grew by 12%, reflecting rising interest in cap table and ESOP management platforms. The UK’s thriving fintech sector and strong legal infrastructure make it a key growth area in Europe.
Asia Pacific is emerging as a key region due to rapid digital transformation, startup ecosystem expansion, and increasing adoption of equity compensation across tech firms. According to the Asian Development Bank, the number of tech startups in APAC grew by 18% in 2023. As IPOs surge in key economies like China and South Korea, companies are turning to automated platforms to manage equity complexity and regulatory compliance. Government-led digitization and business reforms are further supporting this trend.
Japan is witnessing growing interest in equity-based compensation as part of corporate governance reforms under the Stewardship Code. In 2023, the Tokyo Stock Exchange reported a 20% increase in ESOP participation among listed firms. Tokyo-based startup CapTable Cloud launched localized features in 2023 for Japanese regulations and stock option taxation. The Ministry of Economy, Trade and Industry (METI) has also supported digital innovation with subsidies for corporate management systems, indirectly benefiting equity software adoption.
China’s booming startup and IPO landscape, particularly on the STAR Market, has accelerated the demand for equity management software. In 2023, over 300 companies were listed on domestic exchanges, with many adopting equity-based incentives to retain talent (Shanghai Stock Exchange Annual Report 2023). In December 2023, Hangzhou-based equity software firm EquityStar launched compliance tools integrated with China’s CSRC guidelines. Government policies like the 14th Five-Year Plan promoting tech entrepreneurship are further amplifying demand for digital equity platforms.
South Korea's equity management software market is gaining traction due to high startup formation rates and regulatory support for employee ownership. In 2023, the Ministry of SMEs and Startups (MSS) reported that 45% of tech startups now offer stock options. Seoul-based Quotabook, a cap table and equity management provider, secured $11 million in Series A funding in early 2024 to expand services tailored to Korean SMEs. Korea’s KOSDAQ listings have grown steadily, necessitating scalable solutions to manage equity across pre- and post-IPO stages.
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Surge in Private Market Investments and ESOP Adoption
Regulatory Compliance and Cap Table Accuracy Demands
High Cost of Deployment for Early-Stage Startups
Data Privacy and Security Concerns
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The equity management software industry is undergoing rapid transformation marked by strategic acquisitions and tech-driven innovation. In 2024, Bain Capital, BlackRock, and Fidelity acquired Envestnet for $4.5 billion, reinforcing the rising value of integrated wealth platforms. Similarly, Iress, holding 65% of Australia’s wealth advice market, drew buyout interest from Blackstone and Thoma Bravo, signaling consolidation trends. On the innovation front, Deel acquired Capbase in 2023 to integrate equity management into its HR platform, while SeedBlink launched an AI-powered equity management suite in May 2024 for European tech startups. Despite managing $2.5 trillion in assets, Carta shut down its private stock exchange, CartaX, in 2024, reflecting strategic refocusing. These developments reflect an industry pivoting toward scalable, cloud-based solutions and tighter ecosystem integration.
Emerging Trends Shaping the Future of Equity Management Software
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the Equity Management Software market is on an accelerated growth path, primarily driven by increasing venture capital activity and the proliferation of ESOPs and complex ownership structures among startups and private companies. A key driver bolstering this expansion is the rising demand for transparency from private equity-backed firms, with global PE AUM exceeding $12 trillion in 2024. However, the market is constrained by high deployment costs for early-stage startups and stringent data privacy regulations like GDPR and CCPA, which increase compliance complexity. North America dominates the market due to mature financial infrastructure and regulatory alignment, while the cloud-based deployment model leads due to scalability and remote access advantages. Among end users, startups are the fastest-growing segment, supported by global entrepreneurial surges and digitization.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 602.1 million |
Market size value in 2032 | USD 1683.14 million |
Growth Rate | 12.1% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Million |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Equity Management Software Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Equity Management Software Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Global Equity Management Software Market size was valued at USD 542.6 million in 2023 and is poised to grow from USD 627.8 million in 2024 to USD 2016.0 million by 2032, growing at a CAGR of 15.7% during the forecast period (2025-2032).
The equity management software industry is undergoing rapid transformation marked by strategic acquisitions and tech-driven innovation. In 2024, Bain Capital, BlackRock, and Fidelity acquired Envestnet for $4.5 billion, reinforcing the rising value of integrated wealth platforms. Similarly, Iress, holding 65% of Australia’s wealth advice market, drew buyout interest from Blackstone and Thoma Bravo, signaling consolidation trends. On the innovation front, Deel acquired Capbase in 2023 to integrate equity management into its HR platform, while SeedBlink launched an AI-powered equity management suite in May 2024 for European tech startups. Despite managing $2.5 trillion in assets, Carta shut down its private stock exchange, CartaX, in 2024, reflecting strategic refocusing. These developments reflect an industry pivoting toward scalable, cloud-based solutions and tighter ecosystem integration. 'Broadridge Financial Solutions', 'SS&C Technologies Holdings, Inc.', 'SimCorp A/S (Deutsche Börse Group)', 'Envestnet, Inc. (Bain Capital)', 'FNZ', 'Carta, Inc.', 'Certent, Inc.', 'Shareworks by Morgan Stanley', 'E-List Technologies Pvt Ltd.', 'Eqvista Inc.', 'Ledgy AG', 'Capdesk ApS', 'Gust, Inc.', 'KOGER Inc.', 'Altvia Solutions, LLC', 'DEEP POOL Financial Solutions Ltd.', 'Qapita Fintech Pte. Ltd.', 'Imagineer Technology Group', 'Cake equity', 'Computershare'
The rising interest in private equity and widespread adoption of Employee Stock Ownership Plans (ESOPs) are fueling demand for equity management software. According to the National Center for Employee Ownership (NCEO), over 6,500 U.S. companies had ESOPs as of 2023, covering nearly 14 million participants. In response, Carta reported in its 2023 investor presentation that it surpassed $130 billion in assets managed through its equity platform. Stripe, in 2023 regulatory filings, disclosed issuing over $1 billion in employee equity, highlighting the growing complexity requiring digital cap table management.
Rise of Global Multi-Entity Cap Table Management: As companies operate across jurisdictions, managing equity across multiple legal entities is crucial. In 2024, Ledgy reported a 70% increase in customers managing cap tables across three or more countries, indicating growing demand for software with built-in international compliance features.
Why is North America Leading Equity Management Software Market in 2024?
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