Charles Schwab, a leading U.S. financial services giant, has made a bold move into the private market space by leading a $26.5 million Series B funding round for Singapore-based equity management platform Qapita.
This strategic partnership, announced on October 8, 2025, also includes the launch of a new joint service, Schwab Private Issuer Equity Services, designed to assist U.S. startups with cap table management and employee stock plans.
Challenging Carta’s Dominance in Equity Management
The collaboration positions Qapita as a direct competitor to Carta, a dominant player in the equity management sector, which has faced scrutiny over its secondary market practices.
By leveraging Schwab’s extensive experience with public companies and Qapita’s innovative technology, the new platform aims to simplify the complex process of managing equity for late-stage private companies, especially those nearing an IPO.
Historically, Carta and competitors like Pulley have controlled much of the U.S. market, but Schwab’s entry signals a growing interest from traditional financial giants in the booming startup economy.
Expanding Horizons: Qapita’s Global Reach and Impact
Qapita, already a key player in Asia with a significant presence in India—where it serves 50% of the country’s unicorns—now gains a crucial foothold in the U.S. market through this partnership.
The $26.5 million injection will fuel Qapita’s expansion into the U.S. and support the development of new products, such as fund administration tools, to further enhance its offerings.
For Charles Schwab, this move represents a strategic pivot toward private market services, diversifying its portfolio beyond traditional brokerage and wealth management.
Future Implications for Startups and Investors
Industry experts believe this partnership could reshape how startups manage equity, offering a more seamless transition to public markets with Schwab’s backing and expertise.
Looking ahead, the competition between Qapita and Carta may drive innovation, potentially lowering costs and improving services for pre-IPO companies navigating complex equity structures.
As private markets continue to grow globally, Schwab’s investment in Qapita underscores the increasing importance of accessible, reliable equity management solutions for the next generation of tech unicorns.
Maria Lourdes
