You might know that Eqvista is very easy to use. All the options for issuing shares and convertible notes are available on Eqvista. Here is a step-by-step process for issuing and modifying SAFE convertible notes on Eqvista.

Step 1: Log into your Eqvista account and choose the company account that you want to issue the security from. 

Eqvista login

Once you do this, you will be directed to the main dashboard page where you need to click on “Securities” from the left-hand side panel. From this menu, click on “Convertible Instruments”

Convertible Instruments

Step 2: Once done, you will be directed to a new page. On this page, you will see all the company’s convertible securities. To create a SAFE, you need to click on the button that says “Issue Instrument” on the top right-hand side.

Issue Instrument

Step 3: After this, you will be directed to another page where you will need to add the details to set up and issue the SAFE.

First, you will have to select the shareholder to whom you will be issuing this SAFE security. In short, select the shareholder’s name from the available list or create a new shareholder profile. Check out the support article here to add a shareholder.

 set up and issue the SAFE

Step 4: Once you do this, three other fields will appear. They are:

  • Convertible Note Name
  • Issue Date: By default, today’s date and it can be edited.
  • Note Type: Here you will need to select the note type, which would be the Y Combinator SAFE. Once you select this option, two other panels will show up with one field in each.

Note: A SAFE is also called the Y Combinator SAFE. On Eqvista, you will find three types – SAFE, Y Combinator SAFE – Pre Money, and Y Combinator SAFE – Post Money.

Y Combinator SAFE

Step 5: Once you add the details of the Note Type, two fields will appear. The first field below is for filling out the principal amount, which is the amount the company borrows from the security holder.

The second field is – Converts to: This is the type of stock the convertible note converts to. Choose from common or preferred stock. Select the kind of stock that the convertible note would turn into. In this case, we selected common stock.

common or preferred stock

Step 6: As you select the type of shares that the security converts to, some other fields appear, including:

  • Conversion Trigger Amount: This is the minimum amount that will trigger the conversion rate.
  • Valuation Cap: The maximum company valuation when converting the note to shares. There is also an option “No Valuation Cap”.
  • Early Exit Multiple: This is the guaranteed multiplied of the principal paid out.
  • Conversion Discount: This is the discount applied on the purchase of shares during the valuation of the company.
type of shares

Fill in all the details based on your plan and click on “Submit”.


Step 7: After this, you will be directed to the page showing the details of this SAFE you just issued. From here, click on “Actions” and a drop-down menu will appear. There are four options for altering the SAFE security here. This includes:

  • Edit Note: For editing or modifying a part of the security.
  • Convert to Stock: This is to convert the note to stock manually before the maturity date.
  • Repay: For repaying the security. 
  • Mark as Converted: In case you have already converted the note to stock for the investor, you can mark it converted here easily.
  • Delete Note: This is to delete the security in case the deal goes off with the investor or for any other reason.

If you would like to edit the convertible note, click on “Edit Security”.

Edit security

Step 8: A window will appear where you can change the details of the SAFE security.

Save

Once you are done with adding and editing the details, click on “Save”.


Step 9: By selecting “Save”, you will be directed to the next page that shows the details of the SAFE as shown below.

details of the SAFE

Like this, you can both set up, issue, and modify a SAFE on Eqvista

If you want to know more or understand any other process, check out our other support articles here or contact us today!

Interested in issuing & managing shares?

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