Adding a convertible class in QapMap is a simple and easy process. A new Convertible Class is to be added if it the same class has not been added earlier. 

 

We suggest you have Agreements for the convertible security documents in place before you start with this.

 

  1. To add a Share Class, click Add Security Class drop-down and select Convertible Class.

 

 

 

Basic Details

In the displayed Add Convertible Class dialog box, start by entering the Basic Details.

 

 

  1. Select the appropriate Convertible Type. The options are:
    1. Select Custom to specify the various parameters of your convertible note.
    2. Select SAFE to record your SAFE notes.
    3. Select KISS to record your KISS notes.
  2. Type the name for the class in the Convertible Class field.
  3. Type the Convertible Class Prefix by which the convertible class will be recognised. The code you enter here is displayed for applicable shareholders in the dashboard. You can enter a two-three letter or numeric code to keep it share class short on the Captable.
  4. Next, select the Share Class which this Convertible class is associated with. Note that the list you see here comes from security classes added earlier.
  5. Select the appropriate Currency for the Convertible class.
  6. Type the Exchange Rate as defined by the company charter.
  7. Select the Issue Date for issuing the Convertible Note
  8. Type the Maturity period (in months) for the Convertible class.

 

Conversion Parameters

Next, you can specify the Conversion Parameters for the Convertible class.

 

 

  1. Select the Valuation Cap Type.
  2. Select the currency and type the value of the Valuation Cap. 
  3. Select the Valuation Floor Type.
  4. Select the currency and type the value of the Valuation Floor.
  5. Type the Conversion Discount (%).
  6. Select the currency and type the value of the Conversion Trigger.
  7. Select the Include Conversion Interest Rate.

 

Redemption Parameters

Next, you can specify the redemption parameters for the Convertible class.

                                                            

  1. Enter Seniority to set the payout preference to the share classes.
  2. Enter Multiplier for the redemption.
  3. Select Yes in Participating or Not if you want to include the Participating Cap.
  4. Select the Convertible.
  5. Use the Seniority Preview to view the class, seniority level, and payout order. The Convertible Class with highest seniority will be paid out first. The payout will be in preference to all share classes.
  6. Select Yes in Include Redemption Interest Rate if you want to include interest in the redemption.

 

Documents

You can upload supporting documents for the round by dragging and dropping the files.

 

 

Review

Finally, you can review all the details entered and click Save.