Equity Management Software Market Size

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.