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I know the total number of shares to be issued in this new round. Can I model it by the number of shares?
Unfortunately, we don’t support modelling rounds by the number of shares issued at the moment. You can use Add investment by percentage to work out the investment needed for the total number of shares. With that investment sum (or percentage) in mind, you can delete that transaction and then proceed to add the actual transactions by investment or percentage.
If this applies to you, please do share your feedback and requests with our Product team via this Portal.
How do I customise dilution to a new share class?
You can define the characteristics for each existing share class (including liquidation preferences) in Transactions > Share Classes. If a new share class is to be created for the round, you can also add it into Transactions > Share class before modelling the round to define the characteristics.
How do I reflect different share classes within one round?
A financing round typically uses one share class, however, if there is more than one type being issued, you can add a class conversion once the round has been converted into transactions.
Note: Pool creation via scenario modelling → always uses Common shares
If you are creating a Pool increase by selecting an existing Pool, the transaction will allocate shares of the existing share class
How do I model an exit event?
To create an exit waterfall, please visit this article.
Upon an exit, please note that the pool(s) will vest in full.
How are convertible loans converted?
When modelling convertible loan conversions, Ledgy follows these steps:
Interest calculation: Ledgy calculates the interest from the specified date in the convertible (or its creation date if no specific interest start date) to the scenario round's date
Discount or cap application: The system applies either the discount rate or the valuation cap, whichever results in a lower share price for the convertible holder
The effective discount percentage shown indicates whether the calculation was done using the valuation cap or the explicit discount rate
Ledgy supports both simple and compound interest calculations, and you can specify whether to use a 360-day basis or 365-day basis for interest calculations.
How can I create a post-round Pool?
You can define pre-round or post-round in Scenario settings
New pool shares only dilute existing stakeholders:
On: pre-round
Off: post-round
What does this error mean?
Could not find a solution to your input:
This error may appear if the valuation is too low to calculate a valid share price for the convertible loan conversions, or if there are conflicting constraints in your scenario that can't be resolved after multiple iterations.
The resulting share price is lower than the nominal value:
This error appears if the valuation you set is too low, based on the existing amount of shares. Either change the valuation or go to Settings (in the sidebar) and adjust the nominal value, if you haven't yet.
Post-money valuation must be larger than investments:
This error appears when you've set a post-money valuation that is less than or equal to the total investment amount in the round, which is mathematically impossible.
Total percentage must be less than 100%:
This error appears when the total percentage allocations from investors exceed 100%, which would be impossible to fulfill.
NaN:
This typically indicates missing values within the transaction.
What is agio?
The total actual investment from the investors. This number may be slightly different from the investment you input per investor, in order to get to a whole share as an integer
What does actual investment refer to?
Actual investment refers to the precise investment amount calculated based on the integer number of shares allocated after rounding.
When entering investment by currency amount, the actual investment may differ slightly from your intended investment to ensure each investor receives a whole number of shares (number of shares × share price).
This rounding adjustment ensures that your cap table maintains integer share counts while staying as close as possible to your specified investment amounts.
When you enter investments as a percentage, the system will calculate the exact number of shares and resulting investment amount needed to achieve that ownership percentage.