EquityList

What is a Special Purpose Vehicle (SPV)? An SPV is a legal entity created to pool money from investors, typically to make a single investment in a specific company. Unlike traditional funds that diversify across multiple investments, an SPV focuses on one opportunity. Why use an SPV? - SPVs help General Partners (GPs) when their fund lacks enough capital for pro-rata allocations. - They also allow GPs to invest in companies outside the fund's usual strategy. - For new GPs, raising an SPV enables them to present a specific investment opportunity to LPs instead of a broad thesis. A syndicate and an SPV are similar in many ways, but the key difference is that an SPV requires the formation of a legal entity to make the investment, whereas a syndicate is simply a group of investors, with a lead investor managing the deal.

Advisory shares are a form of equity compensation granted to individuals who provide strategic guidance, expertise, or access to valuable networks for a company. Unlike employee stock options or investor shares, advisory shares are not linked to employment contracts or financial investments. Instead, they are a token of appreciation for the advisor's contributions to the company’s growth. As a general guideline: - Advisory shares typically range from 0.25% to 1% of a startup’s total equity per advisor. - For startups with an advisory board, the total equity allocated to the board is usually around 5%. Read more from the link in the comments.

Fair Market Value (FMV) is the price at which a company’s equity is considered fairly valued in the open market. It is typically determined using valuation methodologies, such as the 409A valuation. FMV is influenced by several factors, like: - the company's financial performance - growth potential - prevailing market conditions, and - benchmarks against comparable companies. During fundraising, FMV is used to set the price at which shares are sold to investors, ensuring a fair and transparent exchange.

The Black-Scholes model is a popular method for valuing employee stock options. It calculates the fair value of the options based on factors like stock price, strike price, volatility, time to expiration, and the risk-free interest rate. For Indian listed companies, this model is critical for preparing profit and loss accounts. The valuation along with the assumptions must be disclosed in financial reports to comply with Ind AS 102. In the US, the model is similarly useful for meeting accounting standards like ASC 718, which govern expense reporting for equity compensation. P.S. If you are looking to price your options using the Black-Scholes model, EquityList has helped many companies do so. Reach out to us here: https://lnkd.in/gZzmBGyr

We recently released the ‘Document Center’ feature as a one-to-many form of communication between companies, their employees, and other stakeholders. Here’s what it offers: ✅ Admins can securely upload standard documents to a centralized location, making them accessible to all employees instantly. ✅ In turn, employees get access to system-generated documents like signed grant letters and policy documents auto-populated in their dashboard. How is a Document Center different from a Data Room? Data Rooms are secure document vaults with features like access passcodes, ideal for sharing confidential information with fewer people such as investors or board members. While, Document Center is designed for broader sharing. With a single upload, admins can make files accessible to all employees.

What is a ‘Syndicate’? A syndicate in venture capital is a group of investors who pool their resources to invest in a company together. One lead investor typically manages the deal, while other investors contribute capital and follow their guidance. In return, the lead investor may earn a carried interest (a performance fee, typically a share of profits) from the investment. Syndicates allow investors to share risks and access larger deals that might be out of reach individually.

26. This is the number of items we have shipped in our latest product recap. As a lean team, we take great pride in our relentless focus on execution. Swipe to get a glance of all the things we have worked on. Read more from the link in the comments.

What is reverse vesting? Reverse vesting is when founders (or key employees) are granted shares upfront but only earn the right to keep them over time. If they leave before the vesting period ends, unvested shares are forfeited. For example, A founder gets 1,000 shares with a 4-year vesting period. After 2 years, they keep 500 shares; the remaining 500 are forfeited if they leave. How does it differ from traditional vesting? In traditional vesting, you earn equity over time, while in reverse vesting, you already own the shares upfront but risk losing them if you leave early. It ensures key members remain committed long-term, protecting the company and aligning interests.

Here’s how tracking ESOP and SAR grant status can help finance teams forecast cash inflow/outflow and equity dilution. An overview into grants issued, executed and lapsed allow finance team to clearly assess upcoming compensation expenses and potential equity dilution which helps in accurate budget planning. On EquityList this overview is just one-click away (which otherwise is a manual task). E.g., a tech company that issues ESOPs annually. By tracking exercise rates each year, the finance team can gauge the likely cash impact of future exercises. If the ESOPs are cash-settled, the company will need to prepare for potential cash outflows when employees exercise their options. If they are equity-settled, the company can anticipate a cash inflow but must also account for potential dilution of equity, which can impact shareholder value and earnings per share. Without clear visibility into these scenarios, companies could face unexpected liquidity shortages. EquityList platform provides real-time insights, allowing finance teams to stay ahead of these challenges.

Join our team at EquityList and work with Finance, HR, and business leaders across 400+ companies to streamline cap table and equity management. At EquityList, we’re transforming equity management with intuitive and scalable solutions. Our platform helps businesses make smarter decisions, improve compliance, and build transparency. Backed by AngelList, Hustle Fund, and Republic, we’re excited to grow with passionate people on board. Open Roles: 🦾 Product Operations + Account Manager - 2+ years of experience, ideally in SaaS. - Passion for customer success and problem-solving. - Strong project management skills and multitasking ability. - Comfortable with Excel and eager to learn about finance. - A proactive self-starter who thrives in a collaborative environment. 🥷 Business Development Rep (BDR) - 1-2 years in a customer-facing role at a tech company, preferably B2B SaaS. - Strong communication and writing skills. - Experience working with CxOs and selling solutions. - Comfortable with tools like HubSpot, Google Sheets, and Loom. - Remote-friendly, but we love meeting in person when possible. - Passion for startups and making an impact. Apply from the link in the comments and reach out to Bhumika Khatri and Rishabh Dev Singh if you are interested