Overview:

Sponsors can add or edit an investment to a project rather than an investor doing this through the Investor Portal. 

Step by Step:

From the admin dashboard, select the project to wish to update > select entity and class > click three dots in righthand corner > add investment > select investor type from dropdown menu and name > enter invested amount > change investment status > enter date placed > select preferred distribution method > hit 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: Select this is a regular, non-issue 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: Select “Internal Entity” if this represents 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 would 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 already 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 Modal

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 won't be able to add them.

Investment Details

  • Investment Amount: Dollar amount of equity contributed.
  •  Shares/Ownership %
    • This will vary based on how you chose 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 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 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.
    4. Executed – This status can only be selected manually and is not used by the system to calculate total equity. Best practice is to use the Accepted status for any completed investments.
  • Date Placed- 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.
  • 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 - How the investor prefers to be paid for distributions
      1. Check
      2. Wire
      3. ACH
      4. Other Payment Method
        1. This can vary from project to project, but it will correspond to whatever the investor has set as their default
    2. Payment Method - How the investor is paying as their contribution

 

 

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