Add Investments

Overview:

Sponsors can add or edit an investment in a particular project from within the Cap Table of the entity and class that you select. From the Admin Dashboard, follow the steps below to get started.

Step-by-Step:

1. Select the Projects tab. Select Project List from the drop-down menu.

2. Select the project. Next, select the entity and the class that you wish to make the updates in.

3. Select the three action dots on the upper right side of the page under Project Actions.

4. Select Add Investment from the 3-dot drop-down (top right) or from just above the Cap Table. Note: If no investments are in the class, there will be an additional Add Investment button centered in the Cap Table.

5. Select the Investor Type from the drop-down menu and type or select the Investor Name.

6. Enter the Invested Amount, Investment Status, Date Placed, Investment Type, and Preferred Distribution Method.

7. Select Save.

Definitions:

Investor Type:

• Individual: Select Individual if you plan to add a warm body. A warm body is the actual living, breathing person who owns or is part of any other investment vehicles.
• Entity:
  • Investor Entity: This is a regular, non-issuer investment, i.e. the investor is an LLC, Corporation, etc.
    • This would visually resemble all other investment types aside from the Internal Entity
  • Internal Entity: For adding another tier in your org structure that needs to be represented on the Org Chart, and will have its own raise.
    • With this selection, you are creating another layer through which a class can be created and under which investments can be placed.
    • This type of Entity should be created on the “Entities” tab, not in the CRM.
    • An investor/entity can only be used as an internal entity once.
    • There isn't a way to edit this after you've saved it. If you wanted an internal entity for an investment, and didn't select that before saving, you will need to delete the investment and start over.
• Self-Directed IRA: An individual investing through their IRA.
• Trust: Any type of Trust such as a Revocable Family Trust.
• Joint Account: To add an existing Joint Account to the Cap Table. If you wish to add a new Joint Account, you will need to do so in the CRM and then select from the drop-down in the Investment pop-up display.

Investor Name: This is pulling directly from the CRM, so if a contact you're trying to add to the Cap Table does not currently exist in the CRM, you will not be able to add them.

Investment Details:

• Investment Amount: The dollar amount of equity contributed.
•  Shares/Ownership %:
  • This will vary based on how you choose to calculate ownership in the Class Details.
• Preferred Return:
  • This is where you can customize pref rates at the investor level if it's different from the rest of the class. Entering a value here overrides the class-level preferred return.
• Investment Status:
  1. Accepted - Investment has been completed and finalized.
     • When adding investments to the Cap Table for historical deals.
     • For the most robust functionality, we advise using Accepted status for all completed investments.
  2. Incomplete – The investor started the investment process in the wizard but hasn’t completed it yet.
     • Can be set manually to designate that some info is still missing.
     • Investments with this status are not included in distribution processing.
  3. Pending - Investment has not been finalized.
     • This status is required to utilize the Invite to Invest investment method.
     • Investments with this status are not included in distribution processing.
• Date Placed: The investment date. Preferred return calculations will look at this date unless it is prior to the project Close Date.
• Received Date: Indicates the date the funds were received. This is typically relevant for Capital Calls and Commitments. Note that this date is not used for pref calculations.
• Investment Type: Either 'Investment' or 'Redemption' can be chosen.
• Percent of Proceeds: This field will only appear on classes with 0% ownership. For these classes this field allows you to designate how any pro-rata distribution should be divided among the investors in the class in lieu of an ownership percentage.  Note that there isn’t a 100% validation in this field, however, the system will allocate distributions according to the investor’s percent of proceeds over the total percent for all investors in the class. For example, if you have two investors (A and B) and A has 70% specified as their percent of proceeds and B has 60% specified, on a $100 distribution A would receive $53.85 (70/130*$100) and B would receive $46.15 (60/130*$100).
• Payment Details:
  1. Preferred Distribution Method - The investor's preferred payment method for distributions. This can vary from project to project, or all investments can correspond to the same default payment method if desired.
     • Check
     • Wire
     • ACH
     • Other Payment Method
  2. Payment Method - The method in which the investor will fund their investment.

Adding Investments in Bulk:

Please note if you have quite a few investments to add and do not wish to add them one by one, you can the bulk upload feature. For a full breakdown of this workflow, click here.