How DataOceans modernize their equity management with Pulley

Introduction

DataOceans is a leading provider of Customer Communication Management (CCM) solutions catering to over 150 direct and indirect customers, ranging from innovative start-ups to Fortune 500 companies. Their Oceanus CCM Platform provides companies with customer portals for communications across channels, while also offering digitized processes for managing regulatory letter, notices, customer billing and payment processes.

Founded in 2004, they’ve grown to an estimated annual revenue of over $10m, built on a remarkable 98% retention rate. DataOceans has firmly established its presence as a partner for managing customer communication, billing, and compliance in highly regulated consumer finance, credit union, banking, and healthcare sectors.

They help their customers modernize and digitize a number of legacy processes, so when their cap table management became too manual and difficult, they knew there was a better solution out there.

Challenge

Larry Buckley, the CEO and Founder of DataOceans, faced a formidable challenge after relying on Excel spreadsheets to manage the company's cap table for more than 18 years. The labor-intensive process of maintaining equity data on spreadsheets was becoming unsustainable.

They sought out and engaged another cap table solution, and after a disappointing 6-month attempt at onboarding, the solution failed to set up the cap table accurately.

Frustrated with that experience, Buckley nearly gave-up. After doing more research and tapping his network for recommendations, he discovered Pulley.

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Solution

After speaking with Pulley's sales team, Larry quickly recognized the potential of the platform to meet DataOceans' specific needs. The value of having a cap table expert onboarding DataOceans to the platform, and then available for support, caught Buckley's attention.

A dedicated onboarding specialist ensures a smooth transition

The complexity of DataOceans’ cap table was a result of multiple equity sales and unique transactions that occurred over many years. Pulley’s personalized approach proved to be the ideal solution, as Larry worked closely with Pulley’s onboarding specialist to migrate the cap table, eliminating the need for spreadsheets to manage the company’s equity.

All stakeholders benefit from having access to equity-holding

Previously, stakeholders had low to no awareness of their equity holdings due to the absence of real-time information. Information requests from stakeholders were ad hoc, and manual. Pulley helped to streamline and professionalize communications around holdings to employees and investors.

Now, stakeholders can gain access to their latest equity holdings, including vesting schedules, signed documents, and MBO program objectives. These personalized dashboards and access have increased stakeholder engagement and trust.

A better 409A experience builds trust

Previous 409A processes with other vendors were very manual for Data Oceans. Documents were passed back and forth, the valuation methodology was unclear, with many time-consuming back-and-forth conversations. The choppiness of the process led to a lower confidence in the result. A lack of clear process reduced trust.

For DataOcean’s 409As with Pulley, the process was streamlined and simple. They used underlying cap table data, and communicated the process and methodology. Buckley was much happier with the result, and trusted the valuation.

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Making stock incentives more practical

DataOceans were managing an internal program for incentives that became unwieldy. One update and the entire program had to be updated. It came to a point where the logistics outweighed the potential benefit, and they considered ending the program. With Pulley they are now able to easily maintain their program.

Tasks that previously required extensive manual efforts and coordination among various parties were all streamlined. Stock sales, shareholder list creation, and 409A valuation preparation have all moved online, ensuring compliance with regulatory standards and reducing the risk of errors associated with traditional methods.

Results

In a short period of time, DataOceans was able to improve the company's cap table management thanks to its collaboration with Pulley:

• Time savings: Issuing or selling equity used to take weeks; now since everything is electronic, it can be done in days.
• Risk reduction: Managing these equity tasks online reduced the risk of errors caused by manual processes and physical paperwork.
• Confidence: The transition from spreadsheets instilled confidence in Larry, allowing him to focus on growth and strategic initiatives.

"Managing our cap table was time-consuming, labor-intensive, and frustrating. Pulley has helped us to streamline our cap table management, and gain confidence. We are now able to focus on growth and strategic initiatives, knowing that our cap table is accurate and up-to-date,” said Buckley.

If your company is struggling with the administrative burden and complexity of equity management, talk to Pulley cap table expert. Our intuitive platform and best-in-class customer service can help onboard your cap table and streamline your processes, so you and your stakeholders can have a better equity management experience.