Two popular options in the market are Capboard and Carta. While both platforms offer essential features, their pricing structures and included services vary significantly. Here’s a detailed comparison to help you decide which one fits your needs.
Pricing Overview
Capboard
- Base Plan: $360.00/year, includes up to 15 stakeholders.
- Additional Stakeholders: $24.00/year per stakeholder.
- 409A Valuation: $1,800 per valuation (required annually in most cases).
- Total Estimated Cost: For a company with 30 stakeholders, including the annual 409A valuation, the cost would be approximately $2,520/year.
Carta (Grow Plan)
- Base Plan: Pricing varies depending on company size and specific needs, typically ranging from $6,000 to $19,000 annually.
- Features Included: 409A valuation, electronic filing of 83(b) forms, and other advanced compliance and reporting tools.
- Additional Costs: May apply based on additional features or services required.
- Total Estimated Cost: For a mid-sized company, the average cost is around $12,000/year, including one 409A valuation.
Features Comparison
| Feature | Capboard | Carta (Grow Plan) |
|---|---|---|
| Base Cost | $360/year | $6,000–$19,000/year |
| Stakeholder Management | Included for 15 stakeholders, $24/year per additional stakeholder | Unlimited (cost factored into pricing) |
| 409A Valuation | $1,800 per valuation | Included in the Grow Plan |
| Electronic 83(b) Filing | Not available | Included |
| Ease of Use | Simple, user-friendly interface | Comprehensive, but may be more complex |
| Scalability | Ideal for startups and small businesses | Designed for scaling companies |
| Customer Support | Expert support included in pricing | Tiered support based on plan |
| Virtual Data Room (VDR) | Included | Premium feature |
| Advanced Reporting | Available | Comprehensive |
Key Considerations
Cost Efficiency
- Capboard is significantly more affordable, making it an attractive choice for startups and small businesses looking to manage equity without overspending.
- Carta offers a broader range of features, including 409A valuations in the Grow Plan, but the higher cost might not be justifiable for smaller or early-stage companies.
409A Valuation
- With Capboard, you pay $1,800 per valuation, allowing you to use it only when necessary.
- Carta includes 409A valuations as part of its Grow Plan, which can be more cost-effective if you require multiple valuations annually.
Features and Usability
- Capboard’s straightforward design is ideal for those prioritizing simplicity and cost-effectiveness.
- Carta’s robust features are tailored for scaling companies but may require a larger budget and more training.
Scalability
- Capboard is excellent for startups smaller and medium size companies.
- Carta shines in supporting companies as they grow, offering advanced compliance and reporting tools for large companies.
Which Platform is Right for You?
- Choose Capboard if you’re a cost-conscious startup or small business that needs essential cap table management, ESOP tools, and occasional 409A valuations without paying a premium.
- Choose Carta if you’re a large company requiring advanced features, built-in 409A valuations, and a comprehensive compliance package.
Conclusion
Both Capboard and Carta offer excellent solutions for cap table management and compliance, but your choice will depend on your budget, company size, and specific needs. If affordability and simplicity are your priorities, Capboard is the clear winner. However, if your company is it large, Pre-IPO, and requires advanced features, Carta might be worth the investment.
Regardless of your choice, having the right tools to manage your equity and compliance is key to your company’s growth and success.