Fund management now as easy as pie
A GOLD Coast start-up is aiming to make equity management for unlisted private and public companies a piece of cake.
Palm Beach-based financial services platform Cake is the brainchild of Jason Atkins and Kim Hanson.
Last November they began beta testing for their webbased app, which aims to help small-to-medium size enterprises raise capital quickly, manage investors efficiently and improve the ease in which a company distributes its shares.
Mr Atkins, who has acted as CFO for a number of companies, said the idea was borne out of frustration at the lengthy and onerous process of raising funds.
Mr Atkins said he, with Mr Hanson, set about automating and/or streamlining the accounting and legal processes involved with equity management.
The myriad of tasks include updating the share registry, equity raisings and employee share ownership plans (ESOP).
Mr Atkins said often even basic tasks are not completed, let alone the complex and time-consuming process of raising equity or initiating an ESOP.
“In a lot of cases people do not bother because they see it as too hard,” he said.
“Accountants and lawyers do a good job but there is a lot to do and it takes time.”
He said the app frees up CFOs to focus on growing their businesses rather than compliance.
“There is an incredible opportunity for us to target high-growth, innovative businesses seeking to issue shares quickly and to build their capital and supporter base easily,” Mr Atkins said.
“These organisations are open to automating the complex, time-consuming work behind these activities to free up their CFOs to work on activities that will add value to their bottom lines.”
Between 15 and 20 companies, including Gold Coast car servicing marketplace AutoGuru, and fitness marketplace Pummel, have taken part in the beta testing phase for the app.
Shareholders and investors can view their holdings while company secretaries or finance officers have the ability to update details such as the share registry or issue announcements.
All updates are synchronised with ASIC, for which Cake is a registered software provider.
A widget was released last week enabling users to undertake an equity raising through the Cake platform.
Mr Atkins said there is a similar company in the US called Carta but they are not trying to be the Australian version.
“We don’t want to be exactly like them, but rather we are trying to be a really simple, fast version of this,” he said.
He said Cake, which is undertaking a funding round through equity crowd-funding platform Equitise, will make money by charging companies $4 per shareholder per month to a maximum of $200. “We wanted it to be at least 50 per cent cheaper than what is available now.”
SHAREHOLDERS AND INVESTORS CAN VIEW THEIR HOLDINGS WHILE COMPANY SECRETARIES OR FINANCE OFFICERS HAVE THE ABILITY TO UPDATE DETAILS