Once your startup starts to grow, managing cap table becomes quite a challenging task. You need to onboard new investors, calculate diluted ownership, manage your employees and much more. Such things that can really distract you from running your business.
In this article we are comparing two prominent platforms in the equity management space - Salto X and Ledgy. We'll take a deep dive into how these platforms differ and help you decide which is best suited for your needs.
Overview of Salto X
Salto X is a fresh equity management platform designed to simplify and streamline the management of company shares, options, and cap tables. It offers an intuitive and user-friendly interface and is great for growing companies that can't handle their cap table or option plan in Excel anymore.
Key Features of Salto X:
- Intuitive Interface: Equity doesn't need to be hard. Salto X features an intuitive interface that allows founders to understand the state of their company cap table in seconds.
- Fast onboarding: Salto X makes it quick and easy to set up – whether you are migrating from your Excel or another tool, there will be a customer success specialist helping you get started fast.
- Stakeholder Accounts: Keeping your team engaged is essential, whether they're investors or employees. With stakeholder accounts, each team member can access and check out their equity independently.
- Equity Tools: Salto X has a range of tools to support both founders and employees in understanding equity better – from tax calculators to term sheet makers, all available for free.
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Overview of Ledgy
Ledgy is another popular equity management platform, known for its advanced feature set and robust analytics capabilities. It is made for startups of all sizes, offering tools that help manage cap tables, employee shares, and investor relations.
Key Features of Ledgy:
- Advanced Cap Table Management: Ledgy provides tools to manage your company's cap table with real-time updates. This includes viewing equity distribution, tracking ownership stakes, and maintaining organization.
- Detailed Analytics: Ledgy's analytics tools offer insights into your equity data. You can track performance metrics, visualize trends, and make decisions based on detailed reports.
- International Compliance: Ledgy helps ensure your equity management complies with international regulations. It supports multiple jurisdictions, aiding in compliance regardless of where your team or investors are based.
- Scenario Modelling: Ledgy allows you to explore various financial scenarios and their impact on your cap table. This feature is useful for planning future funding rounds, employee stock option plans, and other strategic decisions.
Detailed Comparison: Salto X vs. Ledgy
User Interface
Salto X stands out with its user-friendly interface, making it an ideal choice for teams new to cap table management. On the Salto X platform, users can easily add transactions and stakeholders, manage both company shares and employee stock options, and gain a deeper understanding of their cap table through visualisations and graphs.
Ledgy is more advanced in terms of features which might also require additional time to get started. Ledgy features a comprehensive set of tools for managing complex cap tables, including advanced reporting, scenario planning, and integration with other financial systems. While the learning curve may be steeper, Ledgy's robust functionality can be beneficial for companies with more sophisticated cap table needs.
Reporting and Analytics
Salto X offers flexibility in reporting, allowing users to easily export transactions in CSV format and create custom reports tailored to their specific needs. Additionally, the platform features comprehensive audit logs, providing a clear and transparent record of every change made on the platform. This level of transparency and accountability is essential for maintaining trust and ensuring the integrity of cap table management.
Ledgy offers built-in reporting capabilities, enabling users to create detailed graphs and visualisations directly on the platform. This feature provides a great tool for analyzing and understanding complex cap table data, especially for larger teams and corporate companies.
Equity Tools & Extras
Salto X offers a range of tools to support founders and employees in managing their equity and stock options. The Total Compensation Calculator helps founders create job offers that include stock options, making it easier to negotiate salaries with employees. Additionally, the Tax Calculator allows employees to estimate their potential tax liability when selling company shares, providing valuable insight for financial planning.
Ledgy's network of partners and experts can open up niche services and automated integrations for you. Through Ledgy, you can tap into a range of specialised services, including EMI, CSOP, 409A valuations, growth share, and fair market valuations, if needed. Additionally, Ledgy allows you to integrate your HR information system, ensuring that your employee data remains accurate and up to date.
Pricing
Salto X offers a more affordable and straightforward pricing structure compared to Ledgy, with a free plan available for those just starting out. The pricing is simple, with a flat rate of €1 per month per stakeholder, with a minimum of 25€ per month. The Growth Plan includes advanced features such as CSV exports, unlimited share pools and grants, and document uploads, making it an attractive option for growing teams.
Ledgy, on the other hand, has a more complex pricing structure with 4 tiers, starting at €3 per stakeholder per month. The first tier allows for up to 50 stakeholders and includes features such as scenario modeling, equity plans, and grants. For larger teams or more advanced features, additional tiers are available, but these require an exploratory call with Ledgy's account specialists to determine the best fit.
Conclusion: Which Platform is Right for You?
Choosing between Salto X and Ledgy depends on your specific needs and priorities. If you value a user-friendly interface, quick onboarding, and helpful equity tools, Salto X might be the better choice for you. On the other hand, if you need powerful analytics, comprehensive international compliance, and robust investor relations management, Ledgy could be the ideal platform.
Consider your company's specific requirements, budget, and growth plans to make the best decision. Whichever you choose, both Salto X and Ledgy can be a great start to introducing better equity management practices.
