Fidelity, a leading investment firm, today unveiled their acquisition of Shoobx – a venture-backed fintech startup – for an undisclosed amount.
In 2013, Jason Furtado and Stephan Richter founded Boston-based Shoobx. The company raised over $10 million in funding from investors such as Austin-based Scout Ventures, Steve Papa, and Atlas Ventures (per Wall Street Journal). All 40 of the Shoobx employees will join Fidelity.
Shoobx provides automated equity management and financing software to private companies of any size, from early growth stages up to IPO. Services include offer letter generation, equity grant for new hires, cap table management and 409A valuation reports.
Shoobx has been dubbed “Carta on steroids” due to its advanced capabilities, whereas per Crunchbase data Carta had raised $1.1 billion and was valued at around $7.4 billion when it raised a whopping $500 million round in August 2021 (led by Silver Lake). We don’t know Shoobx’s valuation upon acquisition, but it is likely smaller than Carta’s based on the amount of capital Shoobx has acquired over time.
Fidelity’s acquisition of Shoobx demonstrates its dedication to the private market and commitment to meet rising demand from scaling businesses. Fidelity last made an acquisition in 2015 when it purchased wealth planning software company eMoney Advisor, according to a spokesperson.
Shoobx is joining Fidelity’s Stock Plan Services business to expand its equity compensation plan recordkeeping and administration services. This move will benefit 700 companies, 2.5 million participants, and an impressive $250 billion in plan value! Fidelity Workplace Investing division is one of the top workplace benefits providers in the US.
Shoobx and the other company had already formed a partnership prior to this announcement, as per Shoobx’s website.
