Common uses for Convertibles Modeling

Skip ahead to:

1. What is the round modeling tool in Aumni?
2. What is Convertible Note & SAFE modeling in Aumni?

3. Modeling SAFE conversion in an early-stage company 

4. Modeling the next financing after a convertible note bridge round

5. Exporting your model 

What is the round modeling tool in Aumni?

Aumni Scenarios' Round Modeling lets you easily model new preferred equity financing rounds. Test different scenarios and unlock a comprehensive post-deal cap table with powerful analytics tools, like the FD% and pro rata calculator to help you determine what you need to invest to maintain your ownership.

What is Convertible Note & SAFE Modeling in Aumni?

With Aumni’s Round Modeling tool, you can add or import unlimited convertible notes, SAFEs, and KISSs to your round model to see how ownership changes post-deal. Aumni automatically calculates conversion mechanics for you, making it fast and easy to understand dilution, equity class issue price, changes to the option pool, and the amount you’ll need to invest to maintain your ownership when you have one or more convertible notes or SAFEs converting in the new round. 

In this article, discover some key ways Aumni customers use our round modeling tool to save time when building scenarios and modeling conversion. 

Modeling SAFE conversion in an early-stage company 

Situation: I hold a SAFE with a Pre Seed company that has yet to raise an equity financing. I'd like to model out the Seed Round to see how my SAFE converts and how much I'll be diluted. 

• From a Company Overview page, click Scenarios and then Model Next Round. You can also select Scenarios from the lefthand sidenav and import a portfolio company into your round model.
• In your round model, you must add the number of common shares outstanding in the Common Outstanding field. (Keep in mind, Aumni can only import capitalization data to your model if there has been a past equity financing.) Refer to a cap table to find this number, sometimes called Fully Diluted Shares. You can also include Options datapoints for more heightened accuracy (not required).
• Add other outstanding convertible instruments--for example, pre-money SAFEs held by co-investors--by clicking Add Convertible Note/SAFE + and then inputting the holder, conversion type, and terms of those notes or SAFEs. There is no terminology distinction between notes and SAFEs and KISSs in the platform--all convertible instruments will be listed as 'Convertible' in Aumni.
• To see how the outstanding convertibles will convert, enter the details of a prospective preferred equity financing in the Deal Scenario section. Outstanding convertibles will convert into equity based on these inputs. If the company increases the option pool, you can define the percentage increase via the Post-Money Options Available for Future Issuance Target field.
• To see how your ownership changes if you participate in the new round, add an investment amount to the My Investment section. Your Post-Deal FD% will automatically update.
  Now you can avoid building models from scratch, saving you time and headaches when modeling conversion and dilution.
  

Modeling the next financing after a convertible note bridge round

Situation: One of my portfolio companies has raised a bridge round of convertible notes, which I did not participate in. I'd like to understand how much I'll be diluted by and how much I'll need to invest in the new round to maintain my pre-deal ownership once the notes convert. 

• Start by importing an existing company into your round model. Capitalization data will automatically populate throughout. 
• To add outstanding convertible instrument information, select Add Convertible Note/SAFE + and then input the holder, conversion type, and terms of those notes or SAFEs. If all bridge round convertible notes were raised on the same terms, you only need to input one of the convertible notes. 
• Input a deal scenario and any option pool increase in the Deal Scenario section. Aumni will automatically calculate the note conversion and generate a comprehensive post-deal cap table that you can reference to understand issue price per share, option pool changes, and dilution. 
• From the My Investment section, you can instantly view your Pre-Deal FD% and then auto-populate your Investment to Maintain Pre-Deal FD% or quick-fill your Pro Rata Rights Allocation (if applicable). 'Quick fill' investment values may differ depending on whether you hold a convertible note or SAFE that is converting in the round. Once you add a participating investment, your Post-Money FD% will update. 
• Now you can quickly understand how much you'll be diluted and what you'll need to invest in the next round to maintain your ownership without rebuilding the cap table or creating a complex model from scratch. 

Exporting your model 

Situation: I'd like to add additional formulas to my export. 

• You can export your round model to Excel with or without formulas. Keep in mind, you must turn on iterative calculations for formulas to work. 
• Blue values are static fields, whereas black values are formula-based. You can change any value in blue to see the other values update. 
• Easily input a new row, reference existing values, or add new formulas to your export.