Security Campaign Builder - 15 - Campaign Details - Offering Info - Convertible Note/Future Equity


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Security Campaign Builder - 15 - Campaign Details - Offering Info - Convertible Note/Future Equity


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Offering Info – This section of the Campaign Builder outlines the terms of the securities being offered and will be customized depending on the type of security you’ve selected when building your campaign (ie: Equity, Debt, Revenue Sharing, Convertible Note, Future Equity)

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Investment Rounds – Previous Rounds – List any rounds of fundraising you’ve conducted previously where you’ve sold securities. You can add multiple funding rounds by clicking “Add One More.”

Date – The date the securities were sold or closing date

Amount – The dollar amount sold in the offering. If an amount was offered that was greater than the amount of securities sold, report only the amount sold.

Round – The label of the previous funding round (ie; Seed, Series A, Series B etc.)

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Current investment round – The label for the present funding round (ie; Seed, Series A, Series B etc.)

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Terms of Securities (Convertible Note/Future Equity) –

Valuation Cap - If the securities of this offering convert at some point in the future (for example, when the company raises an additional round of funding) the valuation cap (if offered) is the maximum valuation for the company at which these securities will convert into that new offering. As an example, if the valuation cap is 3,000,000 and the company raises a new funding round next year at a 6,000,000 valuation (above the valuation cap), investors who owned the convertible note or future equity security would be converted into shares in the new offering at the capped price of 3M (instead of needing to buy shares of the company at the new valuation of 6M). If the new round of funding is at a valuation below the valuation cap, the security would convert into shares at the valuation of the new offering.

% Dividend – If offered, this is the annualized return percentage pledged to owners of the securities you are offering to investors.

% Discount – If offered, the discount is like a coupon that allows anyone investing in the offering to have their securities convert during a future offering at a discount to whatever the valuation of the new offering is priced at. Often, this is used in conjunction with a valuation cap to provide an incentive when a future round of funding is raised below the valuation cap.

Voting Rights – If the securities being offered have voting rights attached to them or could, describe those rights here in detail.

This tutorial continues for the next section of the campaign builder here.