Fidelity Investments™ and Shoobx® Launch New Equity Management Solution to Help Private Companies as They Grow and Prepare to Go Public
Fidelity Investments™, one of the industry's largest company stock plan administrators1, and Shoobx, one of the industry's top performing and fastest growing capitalization table management providers2, today announced an agreement to provide an equity management solution for private companies at all growth stages, up to and including companies preparing for an IPO. The Fidelity/Shoobx solution is available immediately, and additional product details and technical information can be found at www.fidelityworkplace.com/s/stockplanservices-privatecompany.
According to recent industry research, a record number of nearly 500 companies went public in 2020 and experts expect that momentum to continue through 2021.3 However, as businesses evolve from start-up to late stage/pre-IPO, the administration of important business processes, such as tracking the ownership of company shares and managing important legal documentation, can become increasingly complex -- possibly exposing them to errors that could negatively impact their business. As a result, many companies implement new business solutions at each stage of their growth, which could mean multiple changes to key management systems and require significant time and resources.
The new solution is specifically designed to address these business challenges and combines some of the top products and services from Fidelity and Shoobx - including Fidelity's expertise in equity compensation and benefits administration, along with Shoobx's holistic equity management capabilities, board management tools and data room solutions for the secure storage and sharing of important business information.
"The Fidelity/Shoobx offering fills a critical gap for entrepreneurs by providing a flexible solution that grows with the company and eliminates the need to implement new platforms as a company expands. Instead, entrepreneurs can spend more time on building their business and less time on administration," said Mark Haggerty, Head of Stock Plan Services at Fidelity Investments. "This is a natural extension of both Fidelity's and Shoobx's expertise, and our capabilities are incredibly complementary. Together we can help the leadership of private companies confidently navigate the complex growth journey all the way through to an exit or IPO and operating as a public company."
"Raising venture financing can involve thousands upon thousands of documents and corporate data, all of which has to be tracked and reported accurately to avoid issues with investors. While every private company will have some form of capitalization table and data room, not all of them have a solution that is truly automated or a reliable data source, and that's what we're solving for," said Jason Furtado, CEO and Co-Founder of Shoobx. "Together with Fidelity, our solution enables an entrepreneur to remain with one solution for the entirety of their company lifecycle, providing them with peace of mind by reducing unnecessary risk, streamlining business processes and making etter use of their company resources."
Details of the Fidelity/Shoobx Solution
For a full feature list and additional information on pricing, availability and administrative fees, please visit www.fidelityworkplace.com/s/stockplanservices-privatecompany.
About Fidelity Investments
Fidelity Investments and Shoobx are independent entities and are not legally affiliated.
Fidelity Stock Plan Services LLC and Shoobx, Inc are working together to provide distinct administrative services over the lifetime of your company's IPO journey. Shoobx provides cap table management: Fidelity Stock Plan Services provides equity compensation plan recordkeeping and administrative services.
Fidelity Brokerage Services LLC, Member NYSE, SIPC
Fidelity Distributors Company, LLC,
National Financial Services LLC, Member NYSE, SIPC,
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1Based on internal Fidelity data and market analysis.