Companies can signal potential dilution effects of financial instruments (e.g. options) to their investors from the 'Securities' tab of the cap table. Admins can add and edit options, warrants and loans to show the expected dilution of ownership.
To register a new security
Navigate to the 'Securities tab' in the cap table module and hit "New Security" in the top right corner.
Select security (Option, Warrant or Convertible Loan)
Add details:
Name: E.g. "Employee stock options 2023"
Total/sum: The number/sum of the outstanding loan/warrants/options
Allocated (Options only): The number of options that's allocated (usually a portion of the total pool)
Currency (Loan only): Specify the currency of the loan.
Expected shares from execution/conversion: The number of shares that is expected to result from conversion/execution*.
Description: Add some details (e.g. "4 year vesting, 1 year cliff") and/or describe where investors can look into the details (e.g. "See further details in the "Warrants 2024" folder")
*The expected number of shares is a simplification of an often-times complicated calculation, based on various scenarios. The main purpose here is to display to your investors the expected dilution effect.
Startup companies using options with full acceleration upon liquidity will often set the 'expected shares from execution' to be equal to the 'total option pool'. This is because they expect that the total option pool will be converted to shares at some point if the company succeeds with it's plans.
To edit the details of an existing security
Navigate to the 'Securities tab' in the cap table module and locate the security you want to edit.
Click the drop down menu on the right side side of the table and select "Edit".
Follow the instructions as stated in the description on how "to register a new security" (above).
Hit "Save" and verify the changes in the 'Securities' tab.