Converting Notes Using Valuation Method in Spreadsheet

A key transaction an investor makes in a company is conversion of notes into company shares. With Eqvista’s spreadsheet, convert notes into shares using valuation or price per share method.

Here are the steps to follow:

Step 1: Log into Eqvista and select your company.

On the dashboard, click “Spreadsheet” on the left-side menu on the page below.

Step 2: Then, you will be directed to the page as shown below. At the top of the table, click on “Convertible Instruments”. 

Step 3: 

Note: On this page, you can view all the convertible notes issued to shareholders. Check out the support article to learn how to issue convertible notes using spreadsheet.

Under the Conversion section, the first one is “Conversion” which provides two options: “Yes” or “No”. Once you select the option, choose the “Method” from the drop-down menu. 

In this case, select “Valuation” method, enter the grant name, class, valuation, and conversion date. Based on the valuation entered, the share amount and price per share will be automatically displayed as shown below.

Note: You can convert notes using the price per share method by selecting “Price per share”. To understand how to convert using price per share, check out the support article!

Step 4: After filling in the details, click on “Check Data”. If you wish to cancel the process, click “Discard all Changes”.

Step 5: Once details have been checked, a data validation message appears: either the entered details are right and you can save, or some information may be missing or incorrect. 

If there are issues or missing information, the validation message appears in “Red” along with details of the issue.

Once the entered details have been checked, click on “Save”.

Step 6: After data validation, the secondary transaction will be performed in the “Convertible Instruments” table and saved successfully, as shown below.

Step 7: The record of the conversion can be viewed by clicking “Cap Table” on the left to get a drop-down menu and select “Secondary Transactions”. On this page, click on “Conversions” to verify if the grant is converted.

Once you click, you can view the secondary transaction details and click on the grant name to view the conversion.

Step 8: Then, you will be directed to the page to view the details of the conversion, as shown below.

Note: You can add a document to the grant by clicking on “Add Document”. Check out the support article to learn about adding documents to grants.

For more information on Eqvista, check out our support articles or contact us today!