Fidelity makes its first acquisition in 7 years, buying fintech Shoobx • TechCrunch

Fidelity makes its first acquisition in 7 years, buying fintech Shoobx • TechCrunch

Fidelity makes its first acquisition in 7 years, buying fintech Shoobx • TechCrunch

Investment giant Fidelity today announced that it has acquired Shoobx, a venture capital-backed fintech startup, for an undisclosed amount.

Jason Furtado and Stephan Richter founded Shoobx in Boston in 2013, according to Crunchbase. The couple then raised a known $10 million in funding for the company from investors including Austin-based Scout Ventures and Steve Papa. Atlas Ventures is also a funder, according to the Wall Street Journal. All 40 Shoobx employees will join Fidelity.

Shoobx is a provider of automated equity trading and financing software for private companies “at all stages of growth”, up to and including an initial public offering. The services he offers include helping companies send offer letters, granting equity to new hires, managing their capitalization tables, and obtaining a 409A valuation report, among others.

On his website, Shoobx notes that he was called “Carta on steroids” because his “abilities exceed what Carta can deliver”. Meanwhile, data from Carta Crunchbase indicates that Carta has raised $1.1 billion to date, including a massive $500 million fundraising round in August 2021, led by Silver Lake. At that time, the company was valued at around $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 has increased over time.

For its part, Fidelity said its purchase of Shoobx is a sign of its commitment to the private market “and will help satisfy a growing demand that Fidelity sees from private businesses to support them as they evolve and grow.” develop”. The last time Fidelity acquired another company was in 2015, when it acquired wealth planning software company eMoney Advisor, according to a company spokesperson.

Shoobx will be integrated into Fidelity’s Stock Plan Services business, which provides recordkeeping and administration services for stock compensation plans to nearly 700 companies with 2.5 million plan participants, totaling more than 250 billions of dollars in plan value. Stock Plan Services is part of the Workplace Investing division of Fidelity, one of the nation’s leading workplace benefits providers.

According to the Shoobx website, the two companies were partners before this announcement.


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