Ledgy's Equity Data Pulse – H1 Report

"The first half of 2024 has been a confusing time for tech founders, operators and investors." That's Ledgy CEO Yoko Spirig summing up an interesting six months in equity, fundraising and share ownership.

Our Equity Data Pulse H1 Report takes a look at the latest equity data and trends, deriving insights from what's happening on the Ledgy platform. This year has seen more companies adopt the 'pivot to profitability' that followed 2021-22's tech funding boom. As companies focus on financial fundamentals over 'growth at all costs', what are the downstream effects on equity and share ownership?

You'll have to download the full report to get the whole story, but here's a sneak peek at some of the most important equity stories from this year so far:

The UK is the best place in Europe to own equity

In the first half of this year, the average employee option pool in the UK was 13.9% of the cap table. This compares favourably with other big European tech markets such as France (10.4%), Germany (9.3%) and the Netherlands (8.1%).

Are companies pulling back from offering 'top-of-market' equity grants?

So far this year the 'most generous' companies (those that grant above-average equity to employees) cut back equity allocations the most in H1. In H1 2024, employees are allocated 24% less equity in these companies compared to the three-year average.

Investor ownership is highest in Germany

Share classes make a big difference on the cap table, as preferred stock (held by investors) is normally paid out ahead of common stock (held by founders and employees). More preferred stock is held in Germany than anywhere else, and investors own higher stakes in German companies compared to France and the UK.