Investment giant Fidelity announced today that it has acquired Shoobx, a venture capital-backed fintech startup, for an undisclosed sum.
Jason Furtado and Stephen Richter Founded Boston-based Shoobx in 2013, according to Crunchbase. The pair then raised a well-known $10 million in funding for the company with investors such as Austin-based Scout Ventures and Steve Papa. Atlas Ventures is also a financier, according to the Wall Street Journal. All 40 Shoobx employees will join Fidelity.
Shoobx is a provider of automated wealth management operations and financing software for private companies “at all stages of growth,” up to and including an IPO. Services it offers include helping companies send out offer letters, awarding equity to new employees, managing their cap tables, and getting a 409A valuation report.
Up website, Shoobx notes that it’s called “Carta on steroids” because its “capabilities go beyond what Carta can offer.” Meanwhile, Carta Crunchbase indicate data that Carta has raised $1.1 billion to date, including a massive $500 million round raised in August 2021, led by Silver Lake. At the time, the company was valued at about $7.4 billion, according to the same data source. So while we don’t know how much Shoobx was worth at the time of this acquisition, it’s safe to say that its valuation is likely lower than Carta’s based on how much it raised over time.
For its part, Fidelity said the purchase of Shoobx is a sign of its commitment to the private market “and will help meet an increasing demand Fidelity sees from private companies to support them as they scale and grow.” The last time Fidelity acquired another company was in 2015 acquired wealth planning software company eMoney Advisora company spokesperson said.
Shoobx will be folded in Fidelity’s Inventory Planning Services business, which provides administration and accounting services to nearly 700 companies with 2.5 million plan participants, with a total value of more than $250 billion. Stock Plan Services is part of Fidelity’s Workplace Investing Divisionone of the largest providers of benefits in the country.
According to Shoobx’s website, the two companies were partners prior to this announcement.