How to Set Ownership Percentage?
After creating your company, it is quite simple to issue shares and securities. With Eqvista, you have the option to choose ownership percentage from two options:
- Issued Only: Includes only “Issued options” in the calculation of fully diluted number of shares and total shares issued.
- Issued & Reserved: Includes “Reserved options” in the calculation of fully diluted number of shares and total shares issued.
Let’s understand the difference between the two options with an example:
| Shares Issued | 15,000 |
| Reserved Options | 10,000 |
| Issued Options | 1,000 |
| Fully Diluted Number of Shares / Total Shares Issued | |
| Issued Only | 15,000 + 1,000 (Issued Options) = 16,000 |
| Issued & Reserved | 15,000 + 10,000 (Reserved Options) = 25,000 |
| Peter Anderson’s Shares | 10,000 |
| Ownership % | |
| Issued Only | 10,000 / 16,000 * 100 = 62.5% |
| Issued & Reserved | 10,000 / 25,000 * 100 = 40.0% |
Here are the steps to follow:
Step 1: Log into Eqvista account and select your company.
On the dashboard, click on “Company” on the left to get a drop-down menu and 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. You must click on “Advanced” to change the ownership percentage. A pop-up panel will appear, and you can choose the ownership percentage from two options: Issued Only and Issued & Reserved.
Once done, click on “Save”.
Step 4: With this done, the ownership percentage would be updated as shown below.
Step 5: You can view the ownership percentage by clicking Cap Table to get a drop-down, and selecting Detail. The “Total Shares Issued” will include the Reserved Options.
SCENARIO 1 – ISSUED ONLY
SCENARIO 2 – ISSUED AND RESERVED
The ownership percentage can also be viewed by clicking Cap Table to get a drop-down, and selecting Summary. The “Fully Diluted Number of Shares” will include the Reserved Options.
SCENARIO 1 – ISSUED ONLY
SCENARIO 2 – ISSUED AND RESERVED
For more information on Eqvista, check out our support articles or contact us today!
