When Tracksuit celebrated their Series B funding round, something remarkable happened. Instead of the usual corporate announcement, employees across multiple countries logged into their equity platform to see their ownership stake increase in real-time.
The excitement was palpable—not just about the funding, but about truly understanding what their equity meant. This moment crystallized the value of Tracksuit's decision to migrate from Carta to Cake, transforming equity from an abstract benefit into a tangible motivator that every team member could understand and celebrate.
ABOUT TRACKSUIT
Tracksuit provides consumer brands with a simple, affordable way to track brand performance, with a mission to get brand health data into every boardroom.
As a New Zealand-based company with offices in multiple countries, they needed an equity management solution that could handle the complexities of operating in the US and other parts of the world, while maintaining simplicity for their growing team.
THE CHALLENGE
As General Counsel, Dave faced a multi-faceted challenge. Tracksuit's rapid growth across different markets meant they needed an equity platform that could handle country-specific documentation and compliance requirements, particularly for the US market.
But compliance was only part of the equation.
"A lot of companies do have ESOP plans, equity plans, but unless people actually understand it and know what it means to them there's actually no point in having it in the first place, really. Like that's actually the value of it."
With every single team member receiving equity grants, plus additional grants for promotions, Tracksuit needed a solution that could automate their high volume of grant processes while making equity genuinely engaging and understandable for employees.
Tracksuit evaluated potential platforms against three critical criteria: US/global capability, automation potential, and engagement features. The evaluation revealed that Cake uniquely understood the needs of non-US startups operating in the US.
"Cake Equity has really thought about how do we support a global company that has operations in different markets and that includes the US market. It's very much tailored to support a company that's operating in different markets and understands the nuances that are involved."
The platform's automation capabilities addressed their need for seamless end-to-end grant processing, essential for managing their frequent equity distributions. But what truly set Cake apart was its approach to team motivation and equity education.
THE SOLUTION
While evaluating options, Tracksuit discovered that Cake exceeded expectations on every dimension that mattered to them. The platform's superiority across features, combined with unexpected cost benefits, made the decision straightforward.
"Cost wasn't the primary driver for us. But Cake was significantly cheaper than Carta. So when it's basically ahead on all those features, it was kind of a no-brainer decision for us to choose to move to Cake."
This comprehensive advantage meant Tracksuit could enhance their equity management capabilities while reducing expenses—a rare combination in enterprise software migrations.
THE RESULT
The implementation centered on three key elements that transformed how Tracksuit's team interacted with their equity:
Despite warnings about potential migration challenges, the transition from Carta proved remarkably smooth. The process required only downloading reports from their previous provider, which Cake then instantly processed without additional effort from the Tracksuit team.
Cake's comparison feature allows employees to see their equity value under different scenarios, comparing Tracksuit's potential to companies like Uber. This tangible visualization makes abstract equity concepts concrete and exciting.
During their Series B announcement, Tracksuit integrated Cake directly into their celebration, inviting employees to log in and see their updated equity values in real-time, turning a corporate milestone into a personal celebration for each team member.
The migration to Cake delivered immediate and lasting benefits across multiple dimensions. Employee feedback highlighted the platform's intuitive interface and simple user experience, with team members actively engaging with their equity information rather than treating it as an abstract benefit.
"We did the series B announcement, and we included as part of that, you can now log into Cake and see what your equity's worth. And there was a lot of excitement. I got a lot of comments about how people would just really enjoy Cake because it's so simple and intuitive."
The financial benefits proved equally compelling, with Cake delivering significant cost savings compared to Carta while exceeding functionality expectations.
The platform successfully supports Tracksuit's strong team culture where equity serves as a unifying force, ensuring everyone shares in the company's success.
EQUITY PHILOSOPHY
Tracksuit's approach to equity reflects a fundamental belief in shared ownership and collective success. By ensuring every team member receives equity and providing additional grants for promotions, they've created a culture where individual achievements contribute to collective prosperity.
"We have a very strong team culture at Tracksuit. And part of that is that everyone gets ESOP, every single member of the team. It really contributes to everyone feeling part of the company and like celebrating the wins together. When sales are getting wins, you're part of that and everyone's getting an uplift."
This philosophy extends beyond mere ownership to active participation in the company's growth story, with employees understanding not just what they own, but what it could become.
WRAPPING UP
Tracksuit's switch from Carta to Cake demonstrates how the right equity management platform can transform employee ownership from an administrative necessity into a powerful engagement tool. By prioritizing understanding and accessibility alongside technical capabilities, they've created a system where equity truly serves its intended purpose: aligning and motivating their entire team toward shared success.
The seamless migration, combined with significant cost savings and enhanced employee engagement, validated their decision to switch platforms. More importantly, it reinforced their belief that when employees truly understand and engage with their equity, it becomes a cornerstone of company culture rather than just another line item in a compensation package.
This article is designed and intended to provide general information in summary form on general topics. The material may not apply to all jurisdictions. The contents do not constitute legal, financial or tax advice. The contents is not intended to be a substitute for such advice and should not be relied upon as such. If you would like to chat with a lawyer, please get in touch and we can introduce you to one of our very friendly legal partners.
Tracksuit is a brand analytics platform that democratizes brand tracking for consumer companies, making sophisticated market research accessible through simple, affordable tools that help brands understand their performance and make data-driven decisions.
