EShares wishes to be the platform for all things equity.
From cap table management to eShares, secondary trades & rsquo; software helps companies like Slack, Flexport and Funding Circle keep tabs.
The startup is raising a $42 million Series C, led by Menlo Ventures and Social Capital. Matt Murphy from Menlo Ventures and Arjun Sethi out of Social Capital will join the board.
Murphy said he spent in eShares for its own “vision about creating and ultimately trade/monetize ownership. ”
EShares has a subscription business model for its equity management software also works with 6,000 businesses on compliance and corporate governance. It can issue stock to investors electronically.
And eShares is hoping to work with businesses on the IPO process. CEO Henry Ward told TechCrunch that “our task would be to blur the lines of becoming personal and public to make them almost indistinguishable. ” He also hopes that eShares can eventually serve as a replacement for its bankers that are underwriting.
But it already has plenty of different competitors. EShares competes with the Nasdaq Private Market if it comes to facilitating trades. Both operate to sell shares to investors.
It and Ipreo also compete for portfolio administration and investor valuation. EShares a branch of Silicon Valley Bank to make headway.
There’s also. Solium only acquired Capshare for its equity-tracking software.
Since eShares has its own hand in the companies that are equity-related, it hopes this thorough approach will remain a point.
Sethi said because they think eShares will & ldquo; build the rails to deliver the relative efficiency, liquidity, and transparency of markets to the market that ultimately Social Capital spent. ”
Founded in 2014, eShares previously raised capital from Industry Ventures, Spark Capital, Union Square Ventures and many others.
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