Equity Management Software Development: Cost & Features for 2025

In software systems it is often the early bird that makes the worm – Alan Perlis

Managing equity is never easy unless you have access to the right tools. The stock market has gone through a tremendous revolution over the past few years with the advent of progressive tools like equity management software for assisting trading companies.

If we just talk about the past decade, this software has evolved impressively by adapting to the growing needs of companies. Equity management software development has opened endless possibilities for the automation of this industry.

Although this tool may look simple at first glance, it can serve a variety of purposes in reality. In this guide, we will talk about the equity management software market, its features, and the costs associated with building this tool.

What are the Latest Stats About the Equity Management Software Market in 2025?

If we talk about the global market size, it has been increasing continuously with each passing year. The companies are interested to develop equity management software because of the growing audience base.

In 2022, the market was valued at US$ 517 million, and it is widely anticipated to reach US$ 1.9 billion in 2032, according to a report by Allied Market Research. There is a huge demand for specialist applications that simplify the intricacies of stock ownership within an organization.

That is why the demand for software development consulting services to build such tools has been increasing quickly. They are used for a variety of purposes, ranging from optimization of stock ownership management to tracking vesting schedules and maintaining stocks.

A stat by the National Center for Employee Ownership shows that the number of American employees participating in employee stock ownership plans has increased by almost 35% from 2011 to 2021.

It strongly showcased the need for strong management solutions that boost the demand for equity software. Also, the availability of mobile and cloud solutions allows convenient access to these tools that further attract users.

What are the Major Features to Add to Equity Management Software?

Leveraging the full potential of this tool can be highly useful for streamlining the various processes in organizations. So, companies planning to use equity management software development services should look for the following features that effectively simplify the stock planning work.

Supporting Various Types of Equity Awards and Plans

It is a common practice to see various types of equity compensation in companies where the staff work across different jurisdictions. It means the equity management tool should be compatible with national and international requirements.

The fintech software development company should support different compensation plans that automate admin tasks and assist in financial reporting.

Scalability

The equity management software should be able to adapt to the dynamic nature of companies to succeed in the long run. It should have enough scalability to handle the increasing number of shareholders adequately.

Choose a system that grows with the present and future requirements for equity management. Its capability to accommodate changes in software to meet new needs should be top-level.

User Experience and Support

Planning to develop equity management software should include focusing on making this tool accessible for employees of all skill levels. It should come with an easy-to-use interface to make adoption effective.

Think about how much assistance is offered by the program provider while dealing with troubleshooting difficulties. It needs to be understood that this software is more than just technology due to the involvement of people and the assistance they provide.

Data Security

Data security is a critical requirement in equity management platforms that custom software development companies take seriously. As we all know, this data has quite a sensitive nature, and that is why advanced security protocols should be implemented.

Whether it is SSL encryption or multiple-factor authentication, appropriate security measures should be taken to eliminate any unauthorized access. The software should be committed to stringent security measures to maintain the trustworthiness of users.

Long-Term Affordability

Affordability should be the major factor when checking the various equity management solutions. It should align with the present management requirements without affecting the long-term budget of the company.

The software needs to sustain the financial commitment by not only taking affordability seriously but also understanding the cost of scalability even after the expansion of the ESOP program.

Participant Experience

There should be a participant portal in the software to give 24/7 access to the employees about the plans. It is the right of employees to stay informed about the plan details. They should be able to find their stock in the portal conveniently and what it’s worth.

Things like this aren’t possible with a manual equity management solution. However, granting access to employees about their agreements and documents is possible with this tool.

What is the Best Equity Management Software?

These tools play a very important role in handling equity-related tasks like employee stock plans, cap table management, etc. Have a look at the top 7 best equity management software to choose in 2025.

1. Carta

Carta is a highly impressive equity management platform that has assisted hundreds of companies in managing cap tables and securities. Businesses looking to develop equity management software can take inspiration from this interesting product.

Using this tool will allow the companies to get professional expertise to handle diversified equity structures with difficult set distribution rules. Also, their capability to match the unique needs of various organizations is super great.

2. Kore

Kore is a wonderful software that companies can use to get great assistance for their capital raising procedure. It works on a unique approach that improves communication and helps making relationships with investors better.

The tool comes with a built-in ecosystem that can work for a variety of professionals. Also, their educational content is quite impressive and assists companies in training their employees about the equity market.

3. Cake Equity

Cake Equity is one of those tools that users can conveniently set the cap table. The equity management software development of this tool looks phenomenal due to the utmost flexibility available in it.

The users can invite stockholders from any part of the world without worrying about legal issues. Also, the cost-effective price and ease of use make it useful for start-ups.

4. Ledgy

Ledgy is an exceptional software for high-growth firms who want to simplify their equity ownership and employee stock options. It comes with an impressive set of features like compliance management, real-time cap table tracking, and automation capabilities.

The development team has done a fine job with its user-friendly interface. It lets the users streamline their administrative work and deal with equity-related processes with ease.

5. Capdesk

Capdesk is a highly anticipated equity management platform that looks to be created with a huge software development cost. It comes with a highly robust set of features and exclusive customer support that helps companies manage their cap tables effectively.

The biggest feature of this tool is the clear visibility of the cap tables offered to users. It lets the investors and employees conveniently know the stakes in the organization.

How Much Does it Cost to Develop Equity Management Software?

The budget needed for developing equity management software varies greatly depending on a variety of factors. It includes complexity, design, budget, approach, and many more.

If someone asks for a rough idea to develop equity management software, it can be anywhere between US$ 15,000 and US$ 100,000 or even more. Let’s understand the factors affecting the budget for developing this tool in detail below:

Software Size

If someone plans to create a complex product, there will be a need for an extensive set of features, which can increase the cost. Also, the software development consulting services for such a product will be higher, which also needs to be taken into consideration.

It is one of those factors that companies don’t take seriously and that costs a fortune in the end.

Development Approach

We all know hiring an in-house team will cost much more than outsourcing the work and hiring an agency for this purpose. For example, a development team at the company can cost approximately US$ 500,000 per year.

On the other hand, outsourcing work to agencies costs anywhere between US$ 30 and US$ 300 per hour. So, this factor helps in evaluating the cost to a great level.

Customization

The level of customization can play a significant role in deciding the budget for equity management software development. It is recommended to connect with a professional to understand which solution will suit your business.

Generally, software development costs stay between US$ 60,000 to US$ 80,000 for small and medium-scale businesses. However, it can reach up to US$ 10 00,000 for large-level enterprises according to the number of features and complexity levels.

Support and Maintenance

The next factor to be considered while evaluating the budget is support and maintenance for the software. It is crucial for every brand to go for routine maintenance to keep the tool working smoothly as per its potential.

The software maintenance and support services for equity management tools need to be taken seriously during the budgeting process.

What are the Major Types of Equity Management Software?

There is a great range of equity management software, each one created to cater to specific requirements. Have a look at the major ones in detail below:

Software to Manage Equity Compensation Plans

This specific type of equity management tool works best for maintaining and managing the capitalization table to track the ownership of the organization.

Software to Manage Cap Tables

The main motive of these tools is to streamline the administration of cap tables to let businesses manage the intricacies of dilution, option pools, and ownership arrangements.

Software to Manage Investor Connections

The next type of equity management software works to improve investor relationships and transparency. It streamlines the reporting and communication between investors and companies.

Software for Equity Analysis and Reporting

These tools are created to give a complete analysis to businesses by creating reports like equity dilution and value.

As you can see, this software comes in a variety of versions, each one with special features and benefits. Companies can choose the type of software that suits their needs to make things efficient and convenient.

Conclusion

Selecting the right equity management tool can become a tiresome task when you don’t have adequate knowledge. However, anyone can choose the right tool that adjusts to the needs of the business. This requires them to hire a professional company for equity management software development.

Go for a platform that fulfills the current requirements and has the capability to scale with the evolving requirements of the industry. It will assist in streamlining the ESCOP process by not only having the required features but also enhancing capabilities.

We recommend only making a decision after digging deep into the product demos and carefully understanding the functionality. It will help in aligning your tool adequately with the management preferences and requirements of companies. A leading custom software development services provider will help you in developing an equity management software with the best functionalities.

Frequently Asked Questions

What is the principle of equity management software?

Equity management tools are created to streamline and automate equity management in an organization. It ranges from equity tracking to cap table management and compliance reporting.

How important is equity management software?

The importance of such a tool depends on the size of the equity in a company. If it is large enough, these tools can be very handy for performing a variety of tasks. It ranges from stock distribution to share allocation and managing shareholders’ rights.

Why should growing companies opt for equity management software?

Once the company starts to grow, the number of activities related to equity management also increases. The availability of equity management tools allows companies to automate a lot of things, such as maintaining the cap table, reporting ownership changes, and many more.