Go to the Transactions page and in the Filter field, type Convertible loan.
Or open the Round Modeling on the Cap Table page, click Add and Outstanding Convertibles. This also allows you to simulate the conversion of the loans (see modelling section).
Learn more about calculating a financing round with convertible loans or see real world examples of convertible notes parameters.
Let’s take an example: You have 80 options that vest over 48 months with 12 months cliff. After the first 12 months in which 20 options vest, each month 1 option vests for the remaining 36 months. A headache? Not with Ledgy. Choose custom vesting and define 3 periods:
- Percentage: 25, Duration: 12, Vest every: 12 months
- Percentage: 45, Duration: 36, Vest every: 1 month
- Percentage: 30, Duration: 0, Vest every: 0 month
Read more about commonly used parameters HERE.
The app works best in Google Chrome and Mozilla Firefox. If you don’t use one of these browsers and notice a weird behavior, please let us know.
Can I manage pooled investments / trusts in my cap table? Can Ledgy differentiate between legal and economic owner?
Yes, let’s say Bob and Alice hold shares through Bobs Trust Inc. Then you can show your cap table both in legal and economic terms. Here’s how to set it up:
- Go on the Stakeholder page, add Bob, Alice and Bobs Trust Inc. as new stakeholders, edit Bobs Trust Inc. and add Bob and Alice as its beneficiaries.
- Go to the Transactions page, click Add and Issue. In the To field you can now select Bob (via Bobs Trust Inc.) and Alice (via Bobs Trust Inc.).
- Go to the Cap Table page, and you’ll see a new button Legal at the top left. Clicking it will switch to Economic view, showing Bob and Alice instead of Bobs Trust Inc. Notice the small via Bobs Trust Inc. badge next to his shares.
You can also mix direct and indirect investments. For example Bobs Trust Inc. can hold some shares, as well as Bob through Bobs Trust Inc.
Bob will also see his indirect holdings in his Portfolio, with a via Bobs Trust Inc. badge.
Go on the Stakeholder page, add you investor’s email address (at this point the shareholder does NOT receive any email). Then just click the invite button on the right-hand side. You can choose three access right levels.
- Personal The investor will be able to see her stake in her portfolio.
- View-only View everything, but not able to edit.
- Admin Full access.
Every user on Ledgy has a portfolio where she can see her investments.
- Find your portfolio: Click on your name (upper-right corner) then select portfolio.
- See investments: The company you’ve invested in needs to add you as a shareholder with your email address and also needs to click on the Publish button on the Transactions page.
Ledgy lets you work with multiple admins on the cap table. You can see a change history in the change log on the Settings page.
A Valuation must be inserted and published on the Transactions page.
Yes, the exit scenario modeling even takes liquidation preferences with a multiple, whether it’s participating with or without cap and interest into account.
On the Cap Table page, click on Scenarios at the top right and then on Exit. Enter an exit price at the top, then you will see your cap table with return and multiple for each stakeholder, by groups or by classes. It also helps you understand what happens with a breakpoint plot. Click on a different point on the plot, to see the exit scenario at that valuation.
Yes, that’s possible thanks to the Draft mode. Here’s how: Let’s say you would like to see how your cap table will look like after your upcoming series A and B.
- Go to the Cap table page, click on Round modeling at the upper-right corner and simulate your series A. Then click on apply. The new transactions will be created as a draft. You can have a look at them on the Transactions page.
- Now your cap table status is post series A. Repeat the process above for your series B in the Round modeling.
That’s it! To remove these series A and B transactions from your draft, go to the Transactions page and click on the Reset button. But make sure there were no other remaining changes to your transactions before resetting.
There are two ways of converting convertible loans:
- Through the round modeling tool, which also calculates for you how many shares should be issued for the convertible, taking the cap, discount and interest into account. Go to the Cap Table page and click on Round Modeling. Existing convertibles should already be displayed. If not, add them by clicking on Add and then Remaining Convertibles.
- Find your convertible loan on the Transactions page. Then click on the menu (dots) in the transaction itself and select Convert. You need to calculate the number of shares yourself.
Read more about real-world examples of convertible loan parameters.
Yes. The conversion can be a bit tricky, because if an employee pool is created during the round, it is taken into account for the conversion of the SAFE. Ledgy does the math for you, so you're on the safe side ;-)
- Add your SAFE as a convertible loan on the Transactions page.
- Add it to the round modeling.
- Click on Actions on the top right and then on Settings. Make sure Include convertibles in share price and Include pools in share price are activated.
Documents and Reports
Read our quick guide to smoothly import CSV in Excel or Google sheets with special characters and separation formatting.
The blockchain notary takes any document on Ledgy and registers a certificate on the Bitcoin blockchain. Thus, during due diligence, it is possible to take any document and check on Ledgy if and when it was uploaded on Ledgy, by whom, and that it hasn’t been changed since then.
Only a certificate (the hash in more technical terms) is stored on the blockchain, not the document itself. So there’s no privacy risk at all.
When publishing new changes to your cap table, a pdf report is automatically generated and saved to your documents. This creates a bullet-proof due diligence chain which you can later use to impress potential investors or buyers.
Are you looking for a more technical description of the blockchain notary? Have a look here.
Why do I need to specify a beneficiary for institutional investors who hold more than 25% of the company in Switzerland (Meldepflicht)?
In 2015, a law to avoid money laundering had been created. It states that if a shareholder (person or institution) holds 25% or more of the company, he must disclose his name and address to the company.