Carta’s Strategic Expansion into Africa’s Startup Ecosystem
Carta, a leading global platform specializing in equity management and fund administration software, is making significant strides to establish a strong presence in Africa. The company plans to develop tailored solutions that address the unique needs of the continent’s burgeoning startup landscape. This move aligns with Carta’s broader growth strategy, which emphasizes supporting smaller startups through a comprehensive suite of products. Central to this initiative is the appointment of Marvin Coleby, former CEO of Raise, as Head of Product for Asia, the Middle East, and Africa.
Leveraging Local Expertise for Market Adaptation
Marvin Coleby brings invaluable experience and deep regional insights, having cultivated numerous partnerships across Africa during his tenure at Raise. Unlike a simple replication of its U.S. model, Carta is committed to localizing its offerings to fit the specific demands of African markets. Bhavik Vashi and Mohammed Vashi, Carta’s managing directors for Asia, Africa, and the Middle East, emphasize that Coleby’s product and engineering expertise is instrumental in customizing Carta’s platform to serve the continent effectively.
Funding Trends and Local Investor Momentum
While global startup funding reached a record $6.5 billion in 2022, African startups have experienced more modest capital inflows, raising approximately $3.5 billion in 2023 and $3.2 billion in early 2024. Despite this relative decline, local investment firms have increased their stake, accounting for over 30% of funding in 2024 and surpassing foreign investors in the first quarter of 2025. This shift has caught the attention of Carta’s Middle East office, prompting initial investments in Raise to gain closer insight into Africa’s private capital markets.
Strengthening the Middle East-Africa Investment Corridor
As Carta has evolved over the past three years, integrating Coleby into the team has been a strategic move to expand its footprint in the Middle East and Africa. His role is expected to enhance capital flow and talent exchange between these regions, fostering a more interconnected ecosystem. Additionally, Raise users will have the option to transition to Carta’s platform, gaining access to enhanced features and tools.
Empowering African Entrepreneurs with Accessible Tools
Carta plans to offer complimentary software to African startups that have raised less than $1 million and have up to 25 shareholders on their cap tables. This initiative aims to democratize access to equity management tools and support early-stage companies. Furthermore, Carta intends to publish Africa-specific reports once adoption reaches a critical mass. These data-driven insights, already influential in other markets, can provide investors with reliable benchmarks, improve portfolio management, and refine valuation methodologies-addressing a long-standing gap in Africa’s venture capital ecosystem.
Enhancing Investment Confidence Through Data Accuracy
Accurate, localized data is crucial for foreign investors to assess the true potential of African startups. Taiwo Obasan, an African venture capitalist and Carta user, highlights that improved data granularity will boost limited partners’ confidence in Africa-focused funds, leading to increased capital inflows. By offering cap table management, fund accounting, and reporting software tailored to the continent’s realities, Carta aims to provide the transparency and metrics necessary for informed investment decisions.
Global Growth and Market-Specific Adaptations
Carta’s international expansion began with its first office outside the U.S. in Singapore, targeting Asia’s rapidly growing startup funding environment. Leveraging extensive data analytics, Carta developed products to simplify equity ownership and fundraising processes for startup employees. Bhavik Vashi notes that many principles learned in the U.S. private equity market have proven scalable globally, though execution requires market-specific adjustments.
In addition to Asia, Carta has acquired European startups Vauban and Capdesk, and established offices in the United Arab Emirates and Australia. This global footprint underscores the company’s recognition that while private capital fundamentals are universal, each region demands tailored approaches. Notably, Carta counts Moniepoint, a prominent African fintech, among its clients, having facilitated transactions such as the $870,000 share sale by senior staff members.
Refocusing on Africa’s Emerging Startup Base
With fewer African startups reaching large-scale growth, Carta is pivoting towards supporting smaller ventures, which constitute the majority of the continent’s entrepreneurial ecosystem. Vashi explains that while large startups often seek out Carta’s services, the company’s mission is to nurture startups from inception through to IPO and beyond. To achieve this, Carta is collaborating with leading African venture capital firms, legal advisors, auditors, and private equity players to attract and educate early-stage founders on essential topics like cap table management.
Addressing Challenges in Africa’s Secondary Markets
Exit opportunities in Africa remain limited and slower compared to more mature ecosystems. However, Carta’s leadership remains optimistic. Vashi points out that similar challenges exist in other emerging markets, which are gradually seeing increased mergers and acquisitions, especially in sectors like artificial intelligence. Coleby identifies structural hurdles in Africa’s secondary market, such as the need for share prices in later funding rounds to exceed previous valuations and for rounds to be oversubscribed-conditions complicated by currency devaluation and revenue generation in local currencies.
Venture capitalist Fisayo Durojaiye highlights liquidity constraints and the scarcity of high-quality later-stage startups as key obstacles. While Carta cannot directly inject liquidity or build startups, it aims to alleviate these issues by enhancing data transparency. Coleby emphasizes the lack of benchmarks in Africa and the importance of standardized pricing and execution of secondary sales. Carta’s software enforces consistency in financing processes, from SAFE conversions to employee stock option plans and liquidation preferences, thereby fostering a more reliable and efficient secondary market.
