How to Enable Preferred Conversion Rate Ownership?

Once you have added the conversion rate for preferred shares, you can enable preferred conversion rate ownership. Eqvista offers two options for preferred conversion rate ownership in the company settings.

• Yes: The conversion rate of preferred shares is included in the calculation of fully diluted number of shares.
• No: Does not include the conversion rate of preferred shares in the calculation of fully diluted number of shares.

Let’s understand the difference between the two options with an example:

Here are the steps to follow:

Step 1:  Log into Eqvista and select your company.

On the dashboard, click “Company” on the left to get a drop-down menu and then select “Profile”. 

Step 2: Once you click, you will be directed to the page that shows the details of your company. On the top right of the page, click “Edit” to edit the details of the company.

Note: There are three sections – Company Profile Overview, Authorized Shares Overview, and Financial Statements. To further understand the sections in detail, check out the support article here!

Step 3: There are two sections in the panel – Basic and Advanced. To change the ownership settings, you must click on “Advanced”.  A pop-up panel will appear, and you can choose the preferred conversion rate ownership from two options: Yes or No.

Once done, click on “Save”.

Step 4: With this done, the preferred conversion rate ownership would be updated as shown below.

Step 5: You can view the preferred conversion rate ownership by clicking Cap Table to get a drop-down, and selecting “Summary”. 

Scenario 1 – Yes

The conversion rate of preferred shares is included in the calculation of fully diluted number of shares.

Scenario 2 – No

Does not include the conversion rate of preferred shares in the calculation of fully diluted number of shares.

To know more about Eqvista, check out our support articles and knowledge base. For further queries, get in touch with us today!