Here is a step by step guide on how to issue shares to investors through Eqvista
Step 1: Before you can issue new shares, you would have to create the equity class on the Eqvista application for your company. For this, click on the option “Securities” from the left side panel on the dashboard. From the drop down menu, select the option “Equity share class” as shared below:
Step 2: By clicking “Equity share class”, you would be directed to the following page where you can easily begin the process of issuing shares. But as mentioned initially, you might have to first create an equity class in case you haven’t created one yet. This is mostly if you have just started your company and have just issued shares to the founders.
If you have already raised the initial capital round in exchange for equity in your company, you might have a class of equity for it – such as an equity class A. In this case, you would still have to create a new class for the next capital round, and name the equity class as Class B, and so on.
Assuming that the first round is already raised, we would create a share class with common and preferred shares and name the class A. For this, we need to click on “Create New Equity”.
Step 3: By clicking on “Create New Equity”, you would be directed to the following page:
On this page, you would have to first choose the “Equity Type”. There are two types from which you would have to choose; common and preferred stock. Choose the kind of stock for issuing to the investor.
In this example, we have selected the common stock.
Step 4: After selecting the option “Common” in the drop down list of the Equity Type, an additional drop down page comes up as shown below:
Fill out the details as needed. You would first need to name the equity class (over here we have named it Class A), add the number of shares for this class, mention the date when the security was created and when it was approved from the board. Once you have filled in all these details, click on “Submit” to create the equity class.
Step 5: Once you click on “Submit”, you would be directed to the next page as shown below:
Step 6: Now that you have added the new Equity class, you need to create the investor’s profile for being able to issue the shares to the person. For this, click on the “Shareholders” option on the left-hand column of the dashboard as shown below:
Step 7: By clicking on the “Shareholder” option, you would be directed to a page that would display all the shareholders in the company as shown below. Click on “Add a Shareholder”.
Step 8: By clicking on “Add Shareholder”, a form will appear above the list of shareholders as shown below:
Add in the first name, last name and role of the person. Once done, click on “Save”, you can also add more shareholders by clicking on the button that says “+ add more”.
Step 9: By clicking on “Save”, the shareholder will be added to the list as shown below.
Step 10: From here, there are two ways you can now issue the shares to the investor.
In the first method, you can directly issue the shares from the “Securities” section. For this, click on “Securities” from the left-side panel on the dashboard.
When you click on this, you would be directed to the next page where you can see the various types of equity that the company has. Click on the equity class name “Class A” to reach to the following page. And when you do, click on “Issue Shares”.
By selecting this, you would be directed to the next page as shared in the next step.
In the second method, you need to click on “Cap table” on the left-side panel of the dashboard and then on “Detail” from the drop down menu that appears. You would reach the following page:
Here, click on “Issue” from the top right-side corner of the dashboard and then click on “from Shares” in the drop down menu. By clicking on this, you would be directed to the next page as shared in the next step.
Step 11: Regardless of the method you use above, the next page would allow you to easily issue shares to the investor as shown below:
Here, you need to select the Equity Name from the drop down list as shown above. We have clicked on “Class A” which was created in the steps before. Once you have done this, click on “Add a Shareholder” to issue the shares to the shareholder (here, investor) from this equity class.
Step 12: By clicking on the “Add a Shareholder”, a drop down page would appear as shown below:
Here, select the investor’s name from the drop down list in the “Shareholder name” field. You would find the investor whose profile you added initially. Select the name and fill in the other details accordingly, like the date of issuance, the number of shares issued, the price of the shares at the moment, and the certificate number (share name). Other than this, you would have to select if there is a vesting schedule or not.
Just to let you know, you would see another option of “Add a Shareholder” at the end of the form. This is mostly if you want to issue shares to another investor or shareholder. You can click on it and the same form as the above would open, allowing you to fill in the appropriate details.
Step 13: Once you have filled all the details, click on “Submit” to finalize the issuance of the shares to the investor and reach to the following page:
From the above, you can see that the shares have been issued to the investor named Jake Santiago here.