Comparing Capshare and eShares: Cap Table Management Tools for Startups

When choosing the right cap table management tool for your startup, it's crucial to evaluate a few key aspects: cost, functionality, customer support, and overall usability. This article delves into the pros and cons of Capshare and eShares, two prominent players in the market.

Overview of Capshare and eShares

Capshare was acquired by Solium and subsequently by Morgan Stanley, which repackaged it to fit their product offering. Capshare has been in the market for a considerable time and attracts both medium and larger-sized companies. However, for startups that need a basic cap table solution, its cost has become increasingly prohibitive.

eShares has a strong market share and offers the ability to issue stock certificates without significant legal fees. Its intuitive interface has made it a favorite among many tech company founders. However, feedback from some users suggests that customer service and the valuation process can be problematic.

Reliability and Customer Support

According to a user who chose Capshare for its functionalities and cost-effective price proposition, the Capshare team provided exceptional support, making the implementation process quick and smooth. Users chose Capshare for its extensive knowledge support and functionalities, with one outstanding feature being its ability to issue share certificates, similar to eShares.

On the other hand, eShares has faced criticism for its service quality, particularly from the sales organization. A user described an instance where important emails were ignored for weeks, and a rude sales agent increased their valuation price without justification. This suggests that while eShares offers impressive functionality, it may fall short in terms of customer support and reliability in certain areas.

Usability and Functionality

For a tech company founder located in the Bay Area, eShares was the clear choice. The user praised eShares for its simple interface and the positive reactions from employees who claimed their options. The cap table experience shifted from being laborious to a non-issue, making eShares a more pleasant solution. Additionally, the cost of eShares was favorable, and the user's law firm, which services many startups, was also a fan of eShares.

While eShares excels in its user interface and ease of use, the user who has not personally used Capshare but has heard opinions from other tech company founders, suggests that eShare's dominance in the Y Combinator (YC), TechStars, and similar incubator ecosystems is significant. This implies that eShares may offer a more seamless integration for startups in such environments.

Conclusion

In conclusion, when choosing between Capshare and eShares, the decision largely hinges on your startup's needs and the specific challenges you face. Both tools have their strengths and weaknesses, and your choice should reflect your priorities in terms of cost, functionality, and customer support. While Capshare may offer more advanced functionalities and support, eShares may provide a better overall user experience, especially for startups looking for a user-friendly and reliable solution.