Carta Charges into Africa to Overhaul Fragmented Private Capital Landscape

In a bold move to tackle the quirks of Africa's evolving investment scene, Carta, the San Francisco-based powerhouse in equity management software, is rolling out customized tools designed to streamline how startups and investors handle ownership stakes across the continent.

The push comes on the heels of Carta snapping up Marvin Coleby, the ex-CEO of Nairobi's Raise platform, as its new head of product for Asia, the Middle East, and Africa. Coleby, who stands alone from his Raise days on the Carta team, packs a wealth of local connections and know-how that promises to fast-track this venture. Rather than slapping a one-size-fits-all U.S. blueprint on the region, Carta is honing in on adaptations that fit Africa's distinct rhythms—from currency swings to regulatory twists.

Bhavik Vashi, Carta's managing director overseeing Asia, Africa, and the Middle East, couldn't hide his enthusiasm. "Marvin's expertise in product and engineering is a game-changer for tailoring our solutions to truly work here," Vashi said.

This isn't Carta's first brush with emerging markets. Their Middle East outpost spotted the surge in homegrown funding south of the Sahara, sparking an investment in Raise last year. That stake let them keep a close eye on the action, paving the way for deeper involvement. Vashi called the partnership a "perfect fit," one that's already yielding richer options for users left in the lurch after Raise folded its tents in September.

For those founders, the switch to Carta means access to beefed-up features like advanced cap table tracking and fund oversight. To sweeten the deal, Carta is handing out free access to its full suite for African startups that have scooped up under $1 million in funding and juggle no more than 25 shareholders. It's a savvy play in a market where smaller outfits make up the bulk of the action, even as big rounds grab the headlines.

The timing feels right amid shifting winds in African venture funding. After cresting at a whopping $6.5 billion in 2022, inflows dipped to $3.5 billion the next year and hovered around $3.2 billion in 2024, with no dramatic rebound on the horizon. Yet, a silver lining shines through: Local fund managers stepped up their game, accounting for 30% of deals last year and edging out overseas players in the opening quarter of this year. That grassroots momentum is exactly what drew Carta in.

Once enough users come aboard, Carta plans to unleash data-packed reports zeroed in on Africa—much like the ones that have shaped investor strategies in the U.S. and Europe. These could finally plug the gaping holes in market intel that have long scared off deeper commitments from global backers. As one African venture capitalist, Taiwo Obasan, put it, "Solid data lets us craft models that capture the real local flavor, giving outsiders a clearer shot at spotting true value."

Since its 2012 launch, Carta has ballooned into a unicorn by transforming the messy world of startup equity into something digital and digestible. Today, it powers everything from ownership ledgers to investor reporting, with private equity heavyweights driving much of the recent buzz. The company's globe-trotting kicked off in earnest with a Singapore hub in 2021, followed by buys in Europe and outposts in the UAE and Australia.

Africa already boasts early wins, like Nigeria's Moniepoint, where staffers cashed out $870,000 in shares via Carta's system. But the real test lies in nurturing the ecosystem's underdogs. "Our goal is to knit together every corner of private capital into one seamless hub, propelling companies from day one all the way to the public markets," Vashi explained.

Still, hurdles loom large, especially in the secondary trading arena where Africa lags far behind polished hubs like Silicon Valley. Sparse exit routes mean drawn-out waits and slimmer payouts, curbing the full potential of tools like Carta's. Coleby pins much of the drag on deep-rooted snags, such as the pressure to hike share prices in follow-on rounds amid rampant oversubscription—tough when dollar-based earnings get hammered by local currency slides.

Fisayo Durojaiye, another voice in the VC chorus, flags liquidity crunches and spotty quality among late-stage bets as key pain points. Carta's counterpunch? Flood the space with benchmarks and visibility to normalize everything from pricing shares to navigating tax mazes. "Africa lacks those foundational yardsticks," Coleby stressed. "What we're delivering is the data and smarts to level the playing field and make these deals hum across borders."

As Carta digs in, it could spark the kind of transparency that unlocks bolder bets and faster growth, turning Africa's private capital maze into a well-oiled machine.