Latest news with #BhavikVashi
The Sun
25-05-2025
- Business
- The Sun
Carta Receives Financial Services Permission from ADGM's Financial Services Regulatory Authority, Unlocking New Phase of Growth in MENA's Venture Capital and Private Equity Ecosystem
RIYADH, SAUDI ARABIA - Media OutReach Newswire - 23 May 2025 - Carta, the software platform purpose-built for private capital, today announced its Financial Services Permission (FSP) from ADGM's Financial Services Authority (FSRA), unlocking a new phase of growth in Middle East and North Africa (MENA). This milestone significantly advances Carta's global mission to make private markets more accessible, transparent, and equitable. As the world's largest fund administrator for venture capital, Carta will support the private market ecosystem in the MENA region with its end-to-end software platform for fund operations, in addition to its equity management solutions for companies (including startups). Abu Dhabi, renowned as the 'capital of capital,' has shown exceptional growth in the financial services sector. Carta's expansion comes as the UAE establishes itself as a key player in the Middle East, constituting 40% of all funding rounds in the region—a 9% year-on-year increase—according to industry reports. In 2024, assets under management (AUM) within ADGM grew by 245%, with 134 fund and asset managers operating 166 funds by the end of 2024. Carta has strategically chosen ADGM as the location for its new Middle Eastern office, strengthening the company's commitment to aligning with regions that demonstrate significant market potential and robust economic policies. Located at Hub71 WeWork, in the heart of the financial district, Carta's new office serves as a strategic base for expanding sales and marketing efforts in the MENA region, a region the company sees as highly promising. 'The Middle East is the perfect place for Carta expansion,' said Bhavik Vashi, Managing Director of Carta APAC & MENA. 'The regulatory framework in ADGM is one of the most progressive we've seen globally—exactly the type of environment needed to fuel the private markets, which is why we have made a big bet here.' Over the past few years, Carta has been working closely with government regulators and is confident that its comprehensive suite of services—such as quarterly reporting, compliance services, and tax and audit readiness—will effectively address the needs of the local community. Arvind Ramamurthy, Chief of Market Development Officer at ADGM said; 'We congratulate Carta on receiving their FSP from ADGM. We are thrilled to welcome them to ADGM's dynamic ecosystem, where innovation, growth, and opportunity thrive. Your presence enriches Abu Dhabi's financial landscape, and we look forward to supporting your success in this vibrant and forward-thinking community.' Carta currently supports a number of prominent regional customers, including Global Ventures, BECO Capital, Cotu Ventures, Outliers VC, Dubai Future District Fund, and Middle East-based unicorns Foodics and Kitopi. With ADGM license approval, Carta will continue to collaborate with the local VC & PE ecosystem to further enhance the company's service offerings and deliver greater value for the Middle East's growing private markets.
Techday NZ
19-05-2025
- Business
- Techday NZ
ANZ startups lead globally in employee equity ownership
ANZ startups are showing a higher rate of employee equity ownership compared to both regional and global counterparts, according to new data released by Carta in its Startup Equity & Workforce Report. The report reveals that in 2024, 51.8% of startup employees in Australia and New Zealand exercised their stock options, a figure significantly higher than the US rate of 32.2%. The exercise rate in Australia and New Zealand also surpassed that seen in East and Southeast Asia, which stands at 22.8%, and is more than triple the rate of 14.5% seen in the Middle East and South Asia. Australian and New Zealand startups have set aside a median of 12.6% of total equity for employee stock option pools (ESOPs), exceeding both the Asia-Pacific median of 10% and figures seen in other global regions. This trend indicates a strong local commitment to broad-based employee ownership, particularly in a period of tighter access to venture capital funding and reduced hiring activity. According to the report, startups across APAC and the Middle East have scaled back recruitment efforts since the hiring surge between 2019 and 2022. This pullback has coincided with a more conservative approach to compensation, with the median size of initial equity grants to new hires in APAC and the Middle East shrinking by over 30% since 2021. The study finds that ESOPs in APAC and the Middle East typically grow from 7% of fully diluted equity at the pre-seed stage to 11% at the seed round, before stabilising in the 11-13% range at subsequent fundraising stages. ANZ startups are maintaining larger ESOP pools than those observed in East and Southeast Asia or in the Middle East and South Asia. The prevalent use of larger ESOPs and higher employee uptake rates points towards the persistence of a pro-equity culture within the Australian startup ecosystem. The report notes that while initial equity grants for new hires have become smaller, companies are maximising the value of these grants for employees in the current environment. Bhavik Vashi, Managing Director of Carta for APAC and Middle East, commented on the findings: "Australia is punching above its weight on employee ownership, and our latest data shows this trend is only continuing. Aussie founders recognise that giving employees a genuine stake in the business keeps teams motivated and committed, even when capital is tight." "They want to share the upside, but need simpler and more accessible ways to do it. That's why we've introduced Carta Launch in Australia, putting robust, compliant equity tools within reach of every early-stage company. Now, Aussie founders can make ownership their strongest recruitment and retention advantage from day one." Carta is responding to this shift by introducing Carta Launch in Australia, a free platform intended to assist early-stage founders in managing cap tables and issuing ESOPs from the outset. The service is targeted at startups with fewer than 25 stakeholders and which have raised under USD $1 million. Carta Launch is already used by over 25,000 companies globally, which have collectively raised more than USD $24 billion. The report suggests that widespread employee ownership is becoming a strategic advantage for startups by enabling founders to retain key personnel during periods of cash constraint, fostering shared accountability within smaller teams, and encouraging long-term commitment through uncertain market cycles. Effective early structuring of employee ownership can streamline future capital raising and signal maturity to investors, reducing administrative burdens as startups grow. The data and platform rollout indicate that Australian startups are leveraging employee equity not only as a means of managing compensation in a constrained economic climate, but also as a tool for sustaining workforce engagement and company growth over time.
