Which cap table platform should we use?
Takeaway: While Carta is the dominant market leader, newer platforms like AngelList and Pulley offer competitive, often more cost-effective, solutions; the best choice depends on your startup's specific stage, budget, and long-term needs.
Once you've made the wise decision to move off of a spreadsheet, the next step is to choose a cap table management platform. This is a critical piece of your startup's core infrastructure, and you will likely stay with your chosen provider for many years. While the market has several excellent options, they generally fall into three categories, with the primary players being Carta, AngelList, and Pulley.
The 800-Pound Gorilla: Carta
Market Position: Carta is the undisputed market leader, particularly for venture-backed companies from the Seed stage through to IPO. They are the "gold standard" and the platform that most VCs and law firms are most familiar with.
The Pros:
Comprehensive Ecosystem: Carta offers a fully integrated suite of services beyond just cap table management, including 409A valuations, fund administration for VCs, and liquidity services for secondary transactions.
Investor Trust: Because it is the industry standard, using Carta provides instant credibility with investors. They trust the platform and are comfortable with its interface and reports.
The Cons:
Cost: Carta is generally the most expensive option, and its pricing can scale significantly as your company grows and your needs become more complex.
The Fast-Growing Challenger: Pulley
Market Position: Pulley has emerged as a major competitor to Carta, winning significant market share with a focus on speed, usability, and more transparent, founder-friendly pricing.
The Pros:
Cost-Effective: Pulley's pricing is often more competitive and straightforward than Carta's, which can be a major advantage for an early-stage, cash-conscious startup.
Strong Modeling Tools: They are well-regarded for their powerful and easy-to-use fundraising and dilution modeling tools.
The Cons:
Less Mature Ecosystem: While growing rapidly, their ecosystem of integrated services (like 409A valuations) is less mature than Carta's.
The Founder-Centric Option: AngelList
Market Position: AngelList has a long and trusted history in the startup community, starting as a platform for fundraising and recruiting. They have leveraged this position to build out a strong cap table management platform.
The Pros:
Integrated Platform: If you are already using AngelList for fundraising or other services, their cap table product is a seamless and logical extension.
Founder-Friendly Ethos: AngelList has a deep and well-respected brand within the founder community.
The Cons:
Less Enterprise-Focused: While excellent for early-stage companies, their platform may be less suited for the complex needs of a late-stage, pre-IPO company compared to Carta.
Making the Decision
For most startups, the choice will come down to these three leading providers. The best approach is to:
Get Demos: Schedule a product demonstration with each of the top contenders.
Compare Pricing: Get a clear, written quote for the services you will need over the next 1-2 years.
Consult Your Law Firm: Your startup's law firm works with all of these platforms every day. They are an invaluable, unbiased source of information on which platform will be the best fit for your specific stage and needs.
Ultimately, you cannot go wrong with any of these major providers. The most important decision is not which platform you choose, but simply that you make the decision to get off of a spreadsheet and onto a professional platform as early as possible.
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.