What tools are commonly used by startups?

Takeaway: The modern startup runs on a specialized stack of SaaS tools that automate and professionalize critical functions like cap table management, HR, payroll, and accounting, allowing founders to focus on building their product.

Building a successful startup requires a relentless focus on your product and your customers. The best founders delegate or automate everything else. In the modern startup ecosystem, a standard "tech stack" of cloud-based software tools has emerged to handle the critical, but non-core, administrative functions of the business.

Investing in these tools from day one is a high-leverage decision. They create efficiency, ensure compliance, and present a professional and "diligence-ready" face to your investors, auditors, and potential acquirers. Here are the core categories and the leading tools used by most startups.

  • Cap Table & Equity Management:

    • Leading Tools: Carta, AngelList, Pulley.

    • Function: This is your single source of truth for company ownership. These platforms manage your capitalization table, issue electronic stock certificates and option grants, process option exercises, and run your 409A valuations. Using a platform like Carta is the industry standard and will be expected by your VCs.

  • HR & Payroll:

    • Leading Tools: Gusto, Rippling, Deel (for global teams).

    • Function: Do not try to run payroll yourself. These platforms automate the entire process of paying your employees and contractors, withholding the correct taxes, managing benefits, and handling new hire onboarding.

  • Accounting & Expense Management:

    • Leading Tools: QuickBooks Online (for early stage), Brex, Ramp.

    • Function: QuickBooks is the standard general ledger for most early-stage companies. Tools like Brex and Ramp provide a combination of corporate cards and automated expense management software, eliminating the need for manual expense reports and giving you real-time visibility into your company's spending.

  • Communication & Collaboration:

    • Leading Tools: Slack, Notion, Google Workspace.

    • Function: This is the standard internal communication and documentation stack. Slack for real-time messaging, Google Workspace for email and documents, and Notion for building your internal company wiki.

  • Document Management & e-Signature:

    • Leading Tools: Dropbox, Google Drive, DocuSign.

    • Function: As we've discussed, you need a secure Virtual Data Room (VDR) for all your legal and corporate documents. DocuSign is the standard for getting contracts legally and efficiently signed.

While founders should always be frugal, your budget for this core set of operational tools is not a cost; it is an investment in efficiency, compliance, and scalability.

Disclaimer: This post is for general informational purposes only and does not constitute legal, tax, or financial advice. Reading or relying on this content does not create an attorney–client relationship. Every startup’s situation is unique, and you should consult qualified legal or tax professionals before making decisions that may affect your business.