Cap Table Integrations Power Wealth Alerts

This is really a data moat disguised as concierge service. Compound is not just storing paperwork, it is plugging into the systems where startup equity is created and repriced, so it can catch the moments that actually change a client’s after tax outcome, like a new 409A that raises option exercise cost or a five year QSBS clock that unlocks gain exclusion if held long enough.

• Carta and Shareworks are the operating systems for private company equity. They hold the cap table, grants, strike prices, and valuation history. Connecting to them gives Compound a live feed of the facts needed to model exercise decisions, tax bills, and liquidity timing, instead of relying on clients to upload stale spreadsheets and PDFs.
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• A 409A increase matters because it usually pushes up the fair market value used to set option strike prices, which can make exercising later more expensive and can increase tax exposure. For an employee with expiring options, an alert before that reset can be worth far more than the annual advisory fee.
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• QSBS and 83(b) are exactly the kind of details generic wealth apps miss. The tax benefit on qualified small business stock generally depends on holding the stock for more than five years, so tracking grant dates, exercise dates, and legal documents in one vault turns tax planning from a one time conversation into an ongoing workflow.
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The category is moving toward software that watches private wealth the same way modern finance software watches a bank account. The winners will be the firms that sit on top of cap table systems, tax records, and custody accounts, then turn those raw events into timely decisions for concentrated startup shareholders before banks and legacy advisors can react.