In a funding round, you can quickly and easily create multiple investments. In addition, employee pools can also be created. Furthermore, convertible loans can be turned into shares in the financing round. You can learn how to create a financing round in Ledgy with this article.
How do you add investments in a financing round?
Go to Ownership > Transactions > Add transaction > Financing round.
The mandatory fields for investments:
Date: The date when the financing round takes place.
Event name: The name of the financing round, e.g. Seed, Series A, etc.
Share class: Specify the share class and the associated rights for different shareholders.
Stakeholder: The person who invests in the financing round.
Investment: The amount that the stakeholder has invested.
Number of shares: The number of how many shares that will be issued.
Optional fields for investments:
Share price: This is based on the overall company valuation at this round, not necessarily the price paid by individual investors.
Beneficiary: A beneficiary is an economic beneficiary behind a legal entity. If beneficiaries are set, you can view the cap table regarding legal or economic distribution. This can also be used in Ledgy to manage pooled investments.
You can add more investments by clicking on "Add another investment".
Clicking on the Save button will create multiple share issuance transactions in your cap table.
Optional: You can edit the share issuance transactions if you want to add additional information like reverse vesting, documents, etc.
How do you add pools in a financing round?
You can add one or more pools by clicking on the "Add pool" button at the bottom of the financing round modal. The following fields are mandatory:
Clicking the Save button will create multiple pool creation transactions in your cap table.
How do you convert loans in a financing round?
Click the "Convert existing convertible loans" button, and the app will invoke all unconverted loans.
Determine how many shares the convertible loan should be converted into. You can remove convertible loans by clicking the "X" on the right-hand side.
Clicking the Save button will convert the loans and create share issuance transactions in your cap table.