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Founders, if you want your employees to truly value ESOPs, focus on liquidity. But don’t just take our word for it, hear from Mohit Sadaani (Investor & MD, DeVC), Sandeep Jethwani (Co-Founder, Dezerv), and Deep Bajaj (Co-Founder, Sirona), who’ve navigated this firsthand while building The Moms Co. | Good Glamm Group, Dezerv and Sirona respectively. 💡 Big shoutout to Dezerv for hosting this insightful session with Z47! According to Inc42, in 2024, 23 startups conducted buyback programs, allowing 3,000+ employees to cash out over ₹1,448 Cr (≈$170.7 Mn) in real wealth. When your company creates similar opportunities, ESOPs stop being just paper money; they become a tangible financial asset. And liquidity doesn’t have to come from large-scale events. You can run smaller, targeted buybacks for eligible employees. Video credit: Dezerv Watch the full video here: https://lnkd.in/deAGYNmq ___________ If you’d like to learn more about how EquityList can help you with ESOP management and buybacks, DM Rishabh Dev Singh here or email at [email protected].

🗒️ Six steps to issue a share certificate in India Issuing a share certificate is a formal process that legally documents share ownership in a company. Here’s how it's done: Step 1: Board approval The company’s board of directors must pass a resolution authorizing the issuance of share certificates. In India, this is mandated under the Companies Act, 2013, and other applicable regulations. Step 2: Share allotment or transfer confirmation The company must approve the allotment of new shares or the transfer of existing shares to the intended shareholder. Step 3: Preparation of the share certificate The company prepares the share certificate in the prescribed format, such as Form SH-1 under the Companies Act, 2013. 💡 EquityList simplifies this by allowing you to digitally issue new share certificates and initiate transfers. You can also store all your existing share certificate data on the platform. Step 4: Stamping and signing The certificate is stamped (if required by law) and signed by the company’s authorized signatories. Step 5: Updating the register of members The shareholder’s details are recorded in the company’s register of members to maintain an accurate record of ownership. Step 6: Issuance to the shareholder The final share certificate is delivered to the shareholder within the legally prescribed time frame, completing the process. Learn more: https://lnkd.in/dGAaynzy

📢 New dematerialisation update for Alternative Investment Funds (AIFs) The Ministry of Corporate Affairs (MCA) has extended the deadline for private companies to convert their shares into dematerialised form. 💡 Initially, companies (except small and government-owned) had to do this by 30 September 2024, but now they have until 30 June 2025 to comply without penalties. At the same time,SEBI has updated its rules for (AIFs). Starting 1 July 2025, any new investments by AIFs must be in dematerialised form but investments made before this date are exempt. However, there are a few exceptions: - If an investment fund controls a company or if the company is legally required to dematerialise its shares (such as private companies under the Companies Act), then the fund must convert those shares into digital form by 31 October 2025 (previously 30 January 2025). - If the investment is in a private company, this deadline is 30 June 2025 to match the MCA’s timeline. While these extensions provide some relief, it’s important not to delay dematerialisation, as the penalties remain unclear and could be significant. Reach out to Rishabh Dev Singh ([email protected]), and we’ll help you complete the process within 3–4 weeks from start to finish.

A finance team of 3-4 spends at least 7 working days every month computing and cross-verifying options expense calculations. Annually, this adds up to 1,000+ hours and ₹5-6 lakh/year (>$10k/year) in work-time costs. But if you are using EquityList, these reports are built in and can be downloaded instantly: We help you: - Generate IND AS 15 & 102 🇮🇳, ASC 718 🇺🇸 compliant reports in less than a minute - Save time, resources, and money - Avoid clerical errors Reach out to us now to know more: https://lnkd.in/gZzmBGyr

Fully diluted shares represent the total number of shares that would be outstanding if all convertible securities were exercised. It helps the company determine the true ownership percentage of each stakeholder once the company fulfills all its obligations. 💡 To calculate fully diluted shares, add: a. Outstanding shares – Shares issued and held by investors, founders, and employees. b. Stock options – Include all allocated options (vested and unvested) as well as unallocated options in the employee stock option pool. c. Convertible securities – Convertible notes or SAFEs that convert into equity, accounted for based on their conversion terms. d. Warrants – All outstanding warrants, as they represent potential dilution. e. CCPS (Compulsorily Convertible Preference Shares) – Converted into common shares based on their predetermined ratio. 🎯 What is the use of fully diluted shares? a. Investors and analysts rely on fully diluted shares to calculate Earnings Per Share (EPS). b. Venture capitalists use it to determine pre-money and post-money valuations. Since fully diluted cap table is so important, EquityList displays it right after your existing cap table data, making both easily accessible at any time.

Are you still using Google Drive to share your fundraising collaterals? While it's a common choice, it might not provide the level of control and security you need for sensitive company data. A ‘Data Room’ offers that control. With a data room, you can: - Control access with features like email verification, link-based invitations, password protection, and watermarking. - Restrict downloads to prevent unauthorized sharing of your files. - Track activity with detailed logs, including views, IP addresses, time spent on documents, and actions taken. - Reduce administrative overhead by sharing the same data room with multiple investors without them knowing about each other. However, data rooms can be expensive, with prices ranging from $50 to $1000 per month. To help founders who are currently fundraising, we’re offering free access to our data rooms for a limited time. If you’re interested, comment below and we will send you the details to get started.

🚨 Last week, the MCA extended the dematerialisation deadline to June 30, 2025, from the previous deadline of September 2024. ⚠️ However, this extension does not apply if your company has raised funds from an Alternative Investment Fund (AIF). SEBI requires that all AIF investments be held in dematerialised form by January 30, 2025. What does this mean for you? Even if: - Your paid-up capital and annual turnover are less than ₹4 crore and ₹40 crore, respectively - Your company has no subsidiaries - Your company is not an NBFC You are still required to dematerialise your shares if you have raised funding from an AIF. 💡Although the January 30, 2025 deadline has passed, companies are strongly advised to begin the dematerialisation process as soon as possible. If you need this handled start-to-end, EquityList can help you complete the process within 3-4 weeks. Reach out to us to learn more: https://lnkd.in/gZzmBGyr

Did you know? You can issue Offer Letters on EquityList 💪 Stock options are more common than ever in compensation packages, yet most offer letters only highlight cash salary, while equity compensation details are shared in a separate grant letter. This separation creates a disconnect, making it harder for employees to see stock options as real compensation. But with buybacks and IPOs creating tangible wealth every year, equity isn’t just a perk. It is a powerful financial asset. With EquityList, you can issue offer letters that showcase stock options alongside cash pay, helping employees see their true total compensation upfront. Plus, employee dashboards provide ongoing visibility into equity, tracking vested and unvested shares and their value based on the latest FMV, making compensation more transparent and tangible. Reach out to us to know more: https://lnkd.in/gZzmBGyr

According to AngelList’s The State of Venture 2024 report, SAFEs made up 60.20% of all deals, while equity and debt accounted for 35.22% and 4.58%, respectively. In terms of capital raised, SAFEs contributed 41.57%, with equity at 54.52% and debt at 3.91%. 💡 What does it mean? [A] SAFEs are still the go-to choice for early-stage funding, leading to more deals but smaller cheque sizes. In contrast, later-stage rounds tend to favor priced equity, which means fewer deals but larger investments. [B] The data also shows that convertible notes (debt financings) are barely used in startup fundraising today. Learn more about SAFEs from the link in the comments.

Finance managers often spend hours modeling various scenarios whenever the company needs to: - Raise a new round of funding - Create or expand a new option pool - Convert convertible notes/SAFEs to equity Each scenario involves recalculating dilution based on factors like funding amounts, option pool size, and the impact of convertible note/SAFE conversions on ownership. When done on spreadsheets, this means juggling multiple tabs and repeating calculations. Plus, it creates constant dependency—your founder has to reach out to you every time a new simulation is needed. 🚀 But with EquityList’s ‘Simulation’ feature, you can model multiple scenarios in under a minute, while keeping track of all historical calculations in one place. No more manual work, no more back-and-forth. Sign up here to try it for yourself: https://lnkd.in/gZzmBGyr