Ledgy, the company behind an end-to-end equity management platform for high-growth international startups, has raised $22 million in a Series B funding round. The round was led by New Enterprise Associates (NEA), a global venture capital firm that invests in technology and healthcare startups. It has previously invested in Coursera, Plaid and Databricks. The round also included Sequoia Capital, Speedinvest, btov, Visionaries Club and VI Partners, and existing angel investors.
Sequoia Capital led the previous round in September 2021, which raised $10 million and saw Luciana Lixandru, partner at Sequoia join Ledgy’s board. With this round, Jonathan Golden, partner at NEA, also joins the board.
The press release states that Ledgy will invest in new talent and R&D and strengthen its presence across Europe. This will include opening an office in Berlin, Germany, as it looks to expand its presence across Europe. This will be its third office, with the headquarters in Zürich, Switzerland, and a London office was opened after its last funding round. The company already works with over 2,500 companies in 45 countries, including Getir, Monese, Selina Finance, Gorillas, Choco, Alan, Pennylane and Scalapay.
Yoko Spirig, Ledgy co-founder and CEO, commented: “In the past 12 months, we have enjoyed double-digit monthly growth. We have gone from 15 to 65 employees, expanded our customer base to over 45 countries and 2,500 companies, opened a London office and grown our presence in Berlin, and we’re just getting started. The participation of top tier VCs in our Series B is significant for two reasons. First, it’s a powerful validation of Ledgy and our strong growth in the 12 months since our Series A. Second, it reflects a significant trend in which leading US investors are increasing their exposure to the European continent by partnering with the best companies in what is a fast-growing and vibrant startup ecosystem.”
At the heart of its platform are the relationships with investors. These include more than 25,000 stakeholders with 50 leading VC firms and accelerators, including Techstars, Entrepreneur First and APX. The platform provides these investors with a platform that delivers equity management without firms resorting to spreadsheets.
What is Ledgy
Ledgy provides four different solutions:
- HR, compensation and benefits. With integrations to HRIS solutions such as Hibob, Personio and Workday, Ledgy automates employee equity plans in a single solution. It supports more than 20,000 employees already
- Finance, Legal and Accounting. CFOs use Ledgy to manage their equity and investor relations. It supports scenario modelling for funding round and provides analysis for exits. A shared dashboard enables firms to engage with investors with customised and automated KPI reporting
- Legal & Operations. Ledgy handles the critical equity processes for legal and operations teams, letting founders minimize admin and concentrate on scaling
- VCs and Business Angels. Ledgy brings together investors and founders on one scalable platform to collaborate on shared KPIs, see the performance in real-time, communicate and report effectively
Investors can run different country-specific equity plans side by side. CFOs and HR leaders can use the solution to attract better talent with much of the administration load lessened. The cloud-based system also delivers greater transparency and automation for all stakeholders, meeting several needs that fell between different systems previously.
This claim is backed by customers such as Peak, which has grown significantly and completed a $75 million Series C funding round in August 2021, after which it started using Ledgy. John Fraser, Peak’s finance director, said: “Company culture, team engagement and employee wellbeing have always been incredibly important to us at Peak. Part of that is always looking to build a more productive and meaningful culture of ownership within the team. Working with Ledgy, we have created a new share option award across the business. It’s been well received and knocked days – not hours, days – off the process for my team. Compared to what we had before, it’s night and day.”
Enterprise Times: What does this mean
Ledgy now has more funds for European expansion. There is room for growth with the complexities of different schemes within Europe providing a complex landscape for investors. NEA will also help to bring US-based venture capital firms into the European market. They will be assisted by the compliance and automation that the Ledgy platform brings. Whilst the Ledgy focus will likely remain within the European startup scene, it will be interesting to see whether it looks to open a US office at some point.
Whist NEA has some presence in Europe. It is mainly US based. Golden is based in San Francisco and commented: “Through my lens as an investor at NEA, combined with my past experience at category-defining companies like Airbnb, Dropbox and Hubspot, I’ve seen the central role ownership plays in building enduring companies. The equity management challenge is especially acute in Europe, with different legal structures governing equity in every country. Ledgy has created a smart and powerful equity software platform and built an incredible, best-in-class team to support it. Yoko, Ben and Timo understand the challenges faced by companies as they scale, and we are thrilled to partner with the Ledgy team as they continue to reinvent how companies think about equity and ownership.”