Post-money SAFE – Setup and Modify

If you are using Eqvista, you are already aware that you can issue stakeholders with SAFE. The best thing about this application is that you can manage your shareholders, common equity, cap tables, and company filings in one place.

Here are the steps to follow:

Step 1: Log into your Eqvista account and select your company account. 

On the dashboard, click “Securities” from the left-hand side and then “Convertible Instruments”. 

Step 2: On this page, you will see all the convertible securities issued in the company. To create a SAFE, you need to click on the “Issue Instrument”.

Step 3: Then, you will be directed to add the details and issue the SAFE.

Here, you have the option to search for a shareholder or to add a shareholder from here directly. 

Note: You must have the shareholder profile already created. Check out the support article to add a shareholder. If you do not have it created, you can choose the option “Add New Shareholder” here too. 

METHOD 1

If you have already added the shareholder profile in the cap table, you can just type in the name in the search box and the name will appear on the side of it. Click on “Select” and begin the process of issuing the note.

METHOD 2

The second way is by adding a new shareholder profile while issuing a note. This is when you have not added the shareholder profile in the cap table.

A new panel will appear, and select if the shareholder you are adding is an individual or a company. For a company, you will need to add their name and their role. For an individual, you will need to add their first name, the last name, and the person’s role.

Step 4: Once you select the shareholder by searching or adding a new shareholder, fill in the fields – Convertible Note Name, Issue Date, and Note Type.

Note: On Eqvista, you will find three types – SAFE, Y Combinator SAFE – Pre Money, and Y Combinator SAFE – Post Money.

Step 5: After selecting the option, two other panels will show up with one field in each.  The first field would be for filling the “Principal Amount” and the second field is – “Converts to”. The type of stock the convertible note converts to – choose from common or preferred stock. 

Step 6: As you select the type of shares the security converts to, some other fields appear- Conversion Trigger Amount, Valuation Cap (with No Valuation Cap option), Early Exit Multiple, and Conversion Discount.

Fill in all the details and click on “Submit”.

Step 7: Then, you will be directed to the details of this SAFE you just issued. From here, click on “Actions” to get a drop-down menu and select “Edit Security”.

Step 8: Now, you can edit the details of the SAFE security.

Once you are done editing the details, click on “Save”.

If you want to further understand how to use the Eqvista application, check out our support articles or contact us today!