Your guide to processing further investments or instrument conversions
Once you have initially created an investment for a company, if you decide to make further investments, you need a place to add this to your portfolio. This is where the 'follow on' tab comes into use. Not only can you add further investments here, it is also the place to process any convertible instruments into equity.
Initial View
Upon first entering the 'Follow on' tab, you will select which company you would like to process a follow on investment. Only companies that are already within your portfolio will be available to choose from.
Upon selecting the desired company, you will be provided with the below options:
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Add Follow On - This is where you can add any further investments that you have made within the company.
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Equity Conversion Instruments - If you own any instruments that can be converted to equity, a convertible note, for example, will be listed separately and can be chosen to process the conversion.
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Share Split - This option provides you with the availability to process any share dilutions that may have occurred within an investment.
On the right of the screen, you will also be provided with an overview of all previous operations that have been processed within the company.
Conversion to Equity
Once you have chosen the conversion to be processed, further fields will become available for you to input the information relating to the conversion. Depending on which instrument you have chosen, there may be different fields that are precise to different instruments.
Add Follow On
If you are making further investments within a company whether, in the same funding round or another, this investment can be entered here. The fields and information to be entered here are the same as what needed to be entered when you created the initial investment of the company. Further information regarding initial investments can be found here.
Share Split
Although you may never need to use this, this option provides you the ability to process any changes in the share structure of a company and your subsequent investment.
Whichever option you choose to perform your required operation, you will be given the option to add a comment, a title and any transaction costs associated with the operation.
You also have the option to update/edit the existing cap table for the specific company. More information on cap tables is available here.