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:

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Here are the steps to follow:

Step 1:  Log into Eqvista and select your company.

dashboard

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

company 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!

financial statements

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.

preferred conversion rate ownership

Once done, click on “Save”.


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

company profile updated

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.

cap table

Scenario 2 – No

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

summary of cap table

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

Over 20,000 companies use Eqvista to simplify equity, stay compliant, and scale—whether hiring their first employee or closing their next round.