You do not always have to issue simple share options to a shareholder or the investors in your company. At some point in time, you might need to use convertible notes.

Here is how to issue and modify a convertible note in Eqvista.

Step 1: The first thing to do is log in to your Eqvista account and select the company profile. After this, you will be directed to the company dashboard. Select “Securities” from the drop-down menu and click on “Convertible Instrument”. You will then be directed to a page where you can see all the convertible instruments available.

Convertible Instrument

In this case, there are already many convertible instruments available. But as we are here to add a new one, click on “Issue Instrument”.


Step 2: You will reach the page where you will first have to select the instrument holder. To do this, click on the field available and a drop-down list will show up. Select the shareholder to whom you are about to issue the convertible note.

Note: The shareholder profile should have already been created. Check out the support article here to add a shareholder.

select the instrument holder

Step 3: Once you select the shareholder from the list, new fields appear as shown below:

 select the shareholder from the list

You will have to add the note name, the issue date, and the note type.

Note Type: Here you will need to select the note type, which would be the Standard Convertible Debt (Note). Once you select this option, additional options will appear below for the convertible note details.


Step 4: The moment you select the note type, some other fields open up.

 select the note type

The second panel below the type of note would be the – Investment of Funds. In short, once you add in the details of the Note Type, this panel shows up with four more fields to fill in. They are:

  • Principal: The original amount that the company borrows. 
  • Interest Rate: Rate on the principal amount that is accrued.
  • Maturity Date: The date when the payment has to be made back to the note holder.
  • Accrual Frequency: This is the frequency of the interest amount. Once you select the answer to this option, another panel will appear below.

Below this panel is the – Conversion to Shares that are seen under the Investment of Funds.

Conversion to Shares

Here, there is only one field where you need to select the kind of stock that the security turns to. Select the kind of stock that the convertible note would turn into. In this case, we selected common shares.


Step 5: As soon as you select the kind of stock it converts to, some other fields appear below in this panel itself.

select the kind of stock it converts to

Here, there are four additional fields that you would have to fill in, which are:

  • 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. 
  • Early Exit Multiple: This is the guaranteed multiple of the principal paid out. It can be kept as “zero” by default.
  • Conversion Discount: This is the discount that is applied to the purchase of shares during the valuation of the company.

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


Step 6: Once you click on “Submit”, the Standard Convertible Note will be created and you will be directed back to the next page that will show the details of the security.

Note: While the note was created, it was also issued to the shareholder. So, the creation of a convertible note can also be called the issuance of a convertible note.

altering the convertible note

From here, click on Actions and a drop-down menu will appear as shown below. There are four options for altering the convertible note. They include:

  • 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.
  • 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 created in case the deal goes off with the investor or for any other reason.

Let us say that you want to modify this. In this case, select the option “Edit note”.


Step 7: By selecting this, a pop-up window will appear. It would have almost all the information that you just added when issuing the note. The dialogue box has been shared below in parts.

edit note

And the next part below this is:

Change the details that you want to in this box and select “Save”.


Step 8: Once you do this, you will be directed to the updated page of the security as below.

updated page of the security

Like this, you can easily set up, issue and modify a Standard Convertible Note on Eqvista. If you want to know more or understand any other process, check out the other support articles here or contact us today!

Convertible Note – Issue and Modify

Here is how to issue and modify a convertible note in Eqvista. Step 1: The first thing to do is log in to your Eqvista account and select the company profile. After this, you will be directed to the company dashboard. Select “Securities” from the drop-down menu and click on “Convertible Instrument”. You will then … Continued

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