AngelList Equity makes it easy to record changes to securities on the cap table. We strongly recommend you work with your legal team to ensure that the actual legal agreements are properly executed and documented before making any changes to your AngelList Equity cap table.
Your cap table is a tool for tracking ownership rights in your company’s equity. Changes to ownership rights are generally created and tracked in two steps:
- Step 1: Legally execute a transaction to create or change equity rights in your company. This typically involves drafting and signing legally binding agreements.
- Step 2: Update security records in your cap table to record the change in ownership rights that occurred in Step 1. This typically involves creating or updating records in cap table software.
In a few explicitly noted cases, such as employee equity awards and using our Raise tool, you can complete both steps using AngelList Equity.
- Step 1 - Generate & Execute Equity Award: Use document templates created with your legal team to create an equity award that is digitally signed in AngelList by the company and an employee.
- Step 2 - Record Equity Award Issuance: AngelList software automatically updates your cap table to reflect the issuance of the equity award.
Outside of these cases, the execution of a transaction to legally create or modify equity rights needs to occur before you record it in your cap table on AngelList Equity.
For example, if you amend the conversion cap of a SAFE you generally need to:
- Step 1 - Execute: Work with your legal team to draft the SAFE amendment agreement and have the company and investor sign it.
- Step 2 - Record: Record the amendment to update the conversion cap field in the SAFE security in your cap table.
In these cases, recording Step 2 will not by itself create the changes in legal rights in Step 1.
We strongly recommend you work with your legal team to ensure that the actual legal agreements are properly executed and documented before making changes to your AngelList Equity cap table.
There is a top right Action button on every security. If it is not visible, that is either because the security is not eligible for further action (for example, it has already been transferred), or the state of the security needs to be set to (click Edit, set the state, then save). Assuming the security is Active, you will then be able to see options for recording changes (like in the screenshot):
Once you've legally executed a share repurchase, you can record the repurchase and upload the repurchase agreements in your cap table:
- Navigate to Equity > Shares.
- Find the share certificate and click it to navigate to the share certificate's page.
- Click on the actions button in the top right and select Record repurchase.
- Enter the repurchase details and upload the Repurchase Agreement.
- Record the Transaction.
- Review the repurchase and confirm.
The original share will be marked as repurchased.
- Navigate to Equity > Stakeholders.
- Find the service provider to be terminated.
- Click on the action buttons in the row of the employee to reveal the "Terminate Employee" button.
- Add the date and reason for termination. It's important to select the correct reason because it will set the exercise period accordingly. To accelerate vesting of all the employee's shares, check the box. To revoke the employee's access to their dashboard, check the box.
- Add any internal notes (these will not be visible to the employee).
- Upon clicking Mark as Terminated, the employee's grants will be adjusted according to the date of termination and the reason for termination. Vesting will stop on the termination date, unvested options will return to the pool, and vested but unexercised options will be subject to expiry after the exercise period ends.
- Navigate to the grant(s) to confirm their status and pending expiry events.
To convert SAFEs, create the new share certificates first and then you can mark each individual SAFE as converted.