This article explains the basic terms and concepts of Ledgy.
Ledgy considers a stakeholder every person with an interest in your company’s cap table. For example people with a stake in the company such as investors, employees or founders, and, people who are collaborating with you on your cap table such as lawyers or advisors.
There are multiple ways to give people access. There are four access levels: Owner, admin, view, and portfolio.
Portfolio for accounts that only need to see what their stake in your company looks like. This access level is used, for example, for investors or employees.
View-only accounts can access all of your company data, but can’t change any.
Admin accounts can access and edit all of the company data, but critical actions like billing and publishing new transactions are not available to them.
Owner accounts can access and edit all of the company data, including critical actions like billing and publishing.
You find more details about access levels here.
Ledgy’s Cap Table is built out of transactions. A transaction is an event such as investment, convertible loan, employee option pool, employee grant...
You can add transactions from the Ownership > Transactions page.
Before you click the Publish button, all transactions you’ve entered will be visible only to users Admin access level. After you click Publish, the Portfolio and View access level can see the published transactions.
A financing round is a bulk share issuance to multiple stakeholders, on the same date. It can represent an incorporation event or subsequent financing rounds. For example, a company has gone through Incorporation, Seed, Series A and can add each of the rounds separately with the Financing round.
1. Creating a company
- Fill in the company data and check the “I Agree to Ledgy’s Data Processing Addendum”.
2. Adding Share Classes
- Add all of the share classes your company currently has.
You can also specify the class’ voting rights, dividend right, liquidation preference, anti-dilution or add notes.
3. Adding Stakeholders
- Add all of your stakeholders, you can copy-paste them from your current spreadsheet.
- Optionally add stakeholders’ e-mails. This will allow you to invite them to collaborate. See below for more information about this.
- If the Stakeholder is a legal entity, check the box in the column *Legal Entity*.
You can also add people that you just want to give access to your cap table e.g. lawyers or advisors.
You will be able to edit the stakeholders later and add more information, such as the group they belong to (founders, employees, investors…), their address, nationality, birth date, and notes.
4. Cap Table
Depending on your company's history, you can start by adding a financing round, a convertible loan, issue shares, etc.
Most common is to start with a "Financing round"
The first Financing round you add will be created as an incorporation event.
- Add the name of the event
- Add the date
- Select the share class
- Optionally add the latest share price
Then add the subsequent financing rounds. You can copy-paste the data from your existing spreadsheet.
- Copy-paste the stakeholders. Or add them manually, the table will autocomplete the entries.
- Add the amounts of shares to each stakeholder, respective to the share class.
- Optionally add investment amounts.
- Optionally add pools of diluting shares, e.g. employee participation plans that have been created.
5. Invite Stakeholders
This step allows you to quickly invite the stakeholders and start collaborating. You can then send them reports, KPIs, documents and ease the process of investor and employee relations
What happens when you click publish transactions and go live?
- Your cap table will be created and stakeholders with emails, invited.
- You can navigate to “Transactions” to edit existing transactions.
In the picture below you can see the two events added to your transactions. You can edit them by clicking on the 3 dots marked with yellow.
- You can navigate to “Stakeholders” to add more data, re-invite them or change their access level.
Happy cap tabling!