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”.

Convertible Instruments

Step 2: You will then be directed to a page where you can see all the convertible instruments available. 

Overview Convertible Instrument

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


Step 3: Here will need to add in the details to set up and issue a Standard Convertible Note.

Issue Convertible Instrument

Add in the details as below:

Issue Convertible Instrument: This is the first panel for choosing the name of the shareholder. Once you do this, three other fields will appear. They are:

  • Instrument Holder: This is the name of the shareholder you are issuing to. You need to select a name from the list of available shareholders. In case the person you want to issue to isn’t there, you will need to add the shareholder. Check out the support article here to add a shareholder.
  • Convertible Note Name
  • Issue Date
  • 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. 

Investment Funds: 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.

Conversion to Shares: This is the next panel that appears.

 It has five fields to fill as below:

  • Converts to: This is the type of stock that the convertible note converts to.
  • 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 4: Once you click on “Submit”, the Standard Convertible Note will be created and you will be directed back to the next page that would show the details of the security as shown below.

Convertible Note Created

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 5: By selecting this, a pop-up window will appear. Change the details that you want to in this box and select “Save”, as shown below.

Convertible Note Information

Step 6: Once you do this, you will be directed to the updated page of the security as below.

Convertible Note Updated

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!

Interested in issuing & managing shares?

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