Introducing Waterfall Analysis and Round Modeling Features to our Platform

With your company already in place, what are the next steps for your business?

Other than hiring employees and growing your company, you also need to keep track of the ownership of your company. This is especially true if you have multiple partners and outside investments. You can start by focusing your attention on upgrading your cap table (capitalization table of the company) as soon as your company is up and running. 

A cap table is a summary of the ownership of the founders and investors of the company. It also shares the details of dilution on equity as well as its value at each investment round. Still not sure what a cap table is all about? We’ll cover the basics in the next section below:

Introduction to Cap Table

You will soon learn that a cap table is a very important part of any entrepreneur’s life. In fact, a cap table isn’t just an excel sheet that displays the number of shares of the company for each shareholder. It is more than that.  

While a cap table does include the number of transactions that take place, it records many other information such as the share plans, legal transactions and legal documents in a company. And when the company grows, the cap table grows as well. You will find the following in the company’s cap table:

• Stock issuances
• Sales
• Transfers
• Cancellations
• Conversions of debt to equity
• Exercises of options

With all this in mind, a cap table can quickly become complicated, where a simple spreadsheet just doesn’t cut it. That is where cap table software is needed. And Eqvista is a great choice for you, because it comprises all the features you need for keeping track and managing the shares in your company.

What is Eqvista?

Eqvista is a cap table management software. Our application helps you minimize the cost of tracking all this data. You will easily be able to stay in compliance with the law as you utilize the compliance tools incorporated into the system. 

This cloud-based equity management system will allow you to log in from any device and view your cap table. In fact, you can even share access to a part or all of the company’s cap table to the shareholders, based on your preferences.

To understand Eqvista a bit more, here is what the cap table management application provides you with:

• Creating, managing and converting Options and Warrants to stocks
• Supporting all types of Convertible instruments like SAFE (by Y Combinator), convertible notes, KISS (500 Startups), etc.
• Creating, managing and instantly applying your Vesting Plans to shareholders 
• Creating – ESOP(Employees Stock Option Plan)
• Providing personalized shareholder portals 
• Supporting both RSU & RSA
• Performing waterfall analysis 
• Maintaining your equity ledger 
• Issuing electronic stock 
• Managing your CapTable in the cloud and sharing it with all relevant parties

About our new features – Waterfall Analysis & Round Modeling

These two new financial models will greatly help to calculate the share dilution effects and exit strategies of companies using our system. All of this is done through smart built-in algorithms which take care of the math part of these financial models. 

Waterfall Analysis

Waterfall Analysis helps founders and investors understand their payouts of the total value of the company upon exit. This will help the company explore each and every possible exit scenario. This eases the burden on investors from doing the calculations themselves, which can be prone to error or disputes among the shareholders.

Here are the key features of the waterfall analysis:

• Cap Table comparison of payout values
• Converted liability option for note holders
• Waterfall chart for preference rounds
• Cash Dividend option for preference shareholders
• Preference liquidation breakdown of preferred investors
• Multiple inputs for exit date, exit value, and possible transactions fees
• Advanced calculations for preference rounds
• Instantly reactivity for efficient analysis

Round Modeling

Round Modeling feature helps companies make important decisions for the amount and timing of new investments. In essence, the round modeling feature will help the shareholders see how much their share ownership is diluted with new investments into the company. This tool will help owners who want to grow their company but also ensure that they retain control over the company.

Here are the key features of the round modeling in Eqvista:

• Pie chart & key figures of new investment
• Basic and advanced versions of new investment
• Pre-money & post-money convertible basis
• Multiple inputs for pre-money & post-money valuation, date of investment, and investment amount
• Convertible note interest options for convertible notes
• Instant reactivity for input data
• Convertible rate options for preferred shares

These features of both the waterfall analysis and round modeling are embedded in Eqvista, allowing users to make smarter decisions for their companies. We have also created these financial tools while keeping in mind a user-friendly interface and various functionalities. Thus, the new features on Eqvista will not only help you manage and track your company shares, but it will also help you make better financial decisions as well. 

Eqvista Road Map

To help you understand how far Eqvista has come, here is a road map about our journey. Eqvista has been creating its product with an eye on the best benefits for our users. We have a highly experienced team with years of industry knowledge for making the best cap table management system for busy business owners.

Not just that, the application was designed to be user-friendly and easy to understand. Our users should be able to efficiently manage their shares without prior knowledge in cap table management.  From our road map you will be able to see how dedicated we are to offer you the best features as soon as possible.

So, do you want to manage your shares?

All-in-all, it’s all about managing company shares, and Eqvista is here to help you along the way. You can begin using the application today and start managing your shares. We are also open to suggestions and ideas. So, please feel free to share your thoughts with us at – tom@eqvista.com.