Christian Gabriel, founder of equity management firm Capdesk, discusses the company’s journey and his secret to success.
Tell us about your business?
I founded Capdesk in 2015. This is my fourth business venture as an entrepreneur. Before that, I ran a graphic design business, then founded a creative incubator where we developed pitch videos to help companies raise funds. I also founded a consulting firm to assist with crowdfunding, where we set up campaigns and developed educational materials on the crowdfunding process.
Capdesk is headquartered in London with a second office in Denmark, but since the pandemic hit we have switched to a ‘work from anywhere’ model. Currently, we have Capdesker in eight countries and we are planning to increase customer acquisition across Europe in 2021.
My role involved setting the direction for the company, plus making sure everything went smoothly, everyone was happy, and we always had the funds to do what we wanted. I spend about 20% of my time on external issues and 80% on internal issues, which is completely different from the early days of the business. On a typical day, I might hold an interview, meet one-on-one with one of Capdesk’s managers, answer special questions, draft a process for a new initiative, and Prepare for board meeting.
Where did your business idea come from?
Capdesk was inspired by his experience working at a crowdfunding platform in Denmark. The majority of companies track their equity using messy spreadsheets. That’s not ideal for any business, but it’s completely chaotic when you have hundreds or even thousands of people with equity in the company!
Spreadsheets take a lot of time to maintain and have a very high risk of human error. This is a problem if you need to check company ownership information on a short notice, where delays can baffle potential investors, or spotting and correcting errors can create roadblocks. obstacles in the audit process.
Initially, I wanted Capdesk to help crowdfunding companies simplify equity management by digitizing their cap tables and automating time-consuming processes. We now work with all types of private companies, with most of our clients being fast-growing and scaling startups.
I’m incredibly proud that Capdesk has managed to turn equity from a thorn in the middle to its competitive edge. With spreadsheets, the employee equity process can be so complicated that founders feel it’s not worth the effort – although equity is a powerful tool for motivation, reward and retain individuals. Capdesk doesn’t just digitize bound tables. We’re making it easier for leaders to unlock the power of fairness by giving their employees several in-game skins.
What is your point of difference?
Capdesk is the best end-to-end solution for businesses in Europe to manage their equity.
Our truly unique feature is secondary trading. Typically, when you issue stock options to an employee, that person will not be able to access the cash value of their equity until the business is sold or listed on a stock exchange. But life doesn’t always align with the employer’s business plan. I believe option holders will be able to use their equity to put down a deposit to buy a home, start their own company, or quit their job, any time they want.
We have created our second marketplace in partnership with crowdfunding platform Seedrs, so companies can find buyers on the largest market in Europe. We are building an infrastructure modeled after the London Stock Exchange, but for the shares of private companies.
How do you spread the word about your business?
Nothing beats a face-to-face meeting! The best way to get recommendations is to make a great impression and ask your new relationship if there’s anyone else you should contact or they can recommend. Then focus on your customers: optimize your product to keep them happy, deliver an incredible experience, and convert them into raving fans.
How is business during the Covid-19 pandemic?
Better than expected! We had a record year for new customers and far exceeded our revenue goals.
When the first lockdown went into effect, we quickly transitioned to a remote-priority operation and redirected our strategy from ‘unicorn’ (spend aggressively in pursuit of rapid growth) to ‘lost’. momentum’ (conservative, sustainable spending with a strategy focused on strength and resilience).
For me, it’s important to put our people before revenue – your reputation lasts much longer than being locked in. We immediately defer payments to any customers experiencing difficulties and jumped on the call to help customers issue digital stock options. We’ve learned that stock subsidies are a very effective way for founders to retain employees – so if there’s one pang of the pandemic, it’s more and more business leaders businesses are sharing the fruits of their success.
What is the hardest thing about running a business?
Citizen. Working in the tech industry, you might not think it’s an important part of your role – but in reality, everything you do involves people. When you run a business, you create products for people, products that are driven by people and sponsored by people. You have a lot of stakeholders, all of which are unique individuals, and they often want very different things.
Because of this, you have to compromise – sometimes you have to disappoint the investor, and sometimes the customer can’t get what they want. It takes time to get used to handling people’s expectations and what you can realistically deliver. Great CEOs care about people and love being around them – which means it’s really hard to make those compromises, maybe even more so for the best leaders.
‘Human’ decisions are the ones that keep me up at night, wondering if I can do better. Also, as an executive, you can feel lonely – it’s not always possible to vent to your colleagues when everyone is having a hard time!
Have you received any financial support for your business?
We have been very fortunate to have raised capital from several major venture capital firms, currently valued at £10.8 million.
In March, we raised a £5 million Series A expansion round led by Fidelity International Strategic Investments and MiddleGame Ventures. This will accelerate our international expansion and help us develop new, innovative product features.
So far, we have prioritized building a platform for fast-growing startups, but with the new funds we are planning to build a full suite of equity management solutions. for private companies of all shapes and sizes.
What are the biggest challenges you face?
I started Capdesk when I was 24 and it felt like I had to grow into my own business – which was really tough. I also had to do it in a new field, and in a new country. In the UK, I don’t have any friends, classmates or family connections, I just have to figure out for myself what to do with Capdesk.
As a founder, you must constantly improve yourself and your team to push the company to the next level. You make great friends in your startup, but just because someone is a great person, that doesn’t mean they’ll stay with the company forever. Growing a business and maintaining a strong culture as different people come and go is a constant challenge.
What is the best decision you have made so far?
Move to UK! It was not only the best business choice, but the best decision of my life. London attracts dreamers from all over the world: everyone is open to other cultures and different ways of doing things. The people of London are the best in the world.
Any regrets?
I grew up working, so I probably watch Capdesk a bit like people watch their teens – lots of memorable moments where you think you’re the king of the world, then look back and think that you can do much better, you already know more at the time.
What would make running your business so much easier?
I want to achieve complete transparency. I don’t think there is a need for managers, nor for transparent communication between the board, the CEO and everyone else on the team. I wish people could learn to be results-driven – it’s difficult for many subordinates to understand the connection between the tasks they do and the impact on the business. A company where executives, board members, and employees are all linked, and where everyone can relate their activities to goal results, is a CEO’s dream.
What’s next for your business?
Bring the fair revolution to every country in Europe! International expansion is a big focus for Capdesk right now. Each country in Europe has its own legal framework for fairness. The UK scores well for sharing friendliness, but we love the challenge, so we’re launching Capdesk in Germany this year. It may be the most complicated place in Europe to run an employee capital scheme, but it has a thriving tech startup ecosystem.
Everyone can benefit from the wealth of the business they’ve helped create – it doesn’t matter where you live. Educating business leaders about the true power of equity in growing companies is an important part of my role. I hope that providing employee equity will soon become standard practice in all businesses – not just Silicon Valley elites.
