Eqvista typical implementation process:
Sign-Up and Account Creation: Users start by signing up on the Eqvista platform, and creating an account with an email address or other login options like Google or LinkedIn.
Company Profile Setup: Users input basic company details, including company name, type (e.g., C-corporation), incorporation date, country of origin, and authorized shares.
Shareholder Information Entry: Founders and shareholder details are added, including names, email addresses, issuance dates, and the number of shares allocated.
Cap Table Migration (if applicable): For companies switching from another provider, Eqvista offers free migration of existing cap tables to its platform.
Customization and Compliance Setup: Users configure vesting schedules, compliance rules (e.g., ASC 718), and other equity management settings.
Training and Onboarding Support: Eqvista guides through tutorials or direct customer support to help users familiarize themselves with the platform’s features.
Eqvista offers a range of customizable features designed to accommodate specific business needs:
Cap Table Management:: Businesses can create, manage, and access capitalization tables, facilitating the electronic issuance and transfer of shares to founders, employees, and investors.
Custom Weighting in Valuations::The platform's Custom Weighting feature allows users to apply different weight combinations to various valuation methods, providing a tailored approach to determining a startup's value.
Document Management:: Eqvista enables the upload of multiple documents simultaneously, categorization of files, sharing access with stakeholders, and easy downloading, ensuring organized and efficient document handling.
Premium Features:: The Premium plan offers advanced functionalities such as electronic signing of grants, compliance with ASC 718 for accurate financial reporting, waterfall analysis for understanding liquidity event distributions, and financing rounds modeling to simulate the impact of funding on ownership percentages.
Eqvista offers training and support to assist new users in effectively utilizing their equity management platform:
Free Training Sessions:
Eqvista provides complimentary 20-minute training sessions designed to familiarize users with the platform's features. These sessions cover:
Account Management: Guidance on managing multiple companies under one account.
Share Issuance and Management: Instructions on issuing and managing shares for founders, employees, advisors, and investors.
Equity Classes: Insights into handling different equity classes within the company.
Authorized Shares: Understanding and managing authorized shares in the company profile.
Documentation: Managing share certificates and other pertinent documents.
Advanced Features: Introduction to tools like Waterfall Analysis and Round Modeling.
Users can request these training sessions through Eqvista's dedicated page.
Knowledge Center:
Eqvista maintains a comprehensive knowledge center that includes:
Support Articles: Detailed guides on various topics, such as adding shareholders, issuing shares, and managing cap tables.
FAQs: Answers to common questions, including platform functionalities and valuation services.
This resource is particularly beneficial for new founders seeking to understand equity management responsibilities.
Video Tutorials: To enhance user experience, Eqvista offers video tutorials that provide visual guidance on various platform features, such as:
Account Overview: Managing multiple company accounts.
User Roles and Permissions: Understanding different access levels and assigning appropriate roles.
Eqvista implements several security measures to protect user data and ensure privacy:
Two-Factor Authentication (2FA): To enhance account security, Eqvista incorporates 2FA, requiring users to verify their identity through an additional method beyond just a password.
Role-Based Access Control: The platform allows the assignment of specific roles with defined access levels, ensuring that users can only access information pertinent to their responsibilities. This minimizes unnecessary exposure of sensitive data.
Compliance with GDPR: Eqvista adheres to the General Data Protection Regulation (GDPR), implementing measures such as data minimization and ensuring that personal data is processed lawfully and transparently.
Secure Virtual Data Rooms: For due diligence and other sensitive processes, Eqvista offers virtual data rooms equipped with security features like permission levels, watermarking, and access restrictions to safeguard confidential information.
Eqvista policies on data ownership and portability are designed to ensure clients retain control over their data and can transfer it as needed:
Data Ownership:
Client Data Control: Clients are responsible for the accuracy, quality, and legality of their data, as well as ensuring they have the rights to use it within Eqvista's services.
Non-Disclosure to Third Parties: Eqvista commits to not selling, trading, or transferring client data to external parties, ensuring data remains confidential within the organization.
Data Portability:
Eqvista offers flexible pricing plans that allow organizations to scale their services in line with changing needs:
Freemium Plan:
Cost: Free
Features: Essential tools for cap table management, suitable for companies with up to 20 shareholders.
Scalability: Ideal for startups or small businesses; as the company grows beyond 20 shareholders, upgrading to a paid plan is necessary.
Premium Plan:
Cost: $2 per shareholder per month
Features: Includes all Freemium features plus compliance services, e-signing capabilities, advanced tools like waterfall analysis, and financing rounds modeling.
Scalability: Designed for growing companies; the plan cost adjusts based on the number of shareholders, allowing for seamless scaling.
Enterprise Plan:
Cost: Starts at $160 per month for 30 shareholders; pricing scales with the number of shareholders.
Features: Encompasses all Premium features, free cap table setup, and unlimited 409A valuations within the subscription year.
The terms and conditions for contract renewal and cancellation for Eqvista are as follows:
Subscription Renewal: All subscriptions automatically renew on their anniversary date unless canceled. For the Enterprise package, the subscription will automatically renew for another 12 months unless either party provides written notice of non-renewal at least 30 days before the current term ends. Renewal fees are subject to change, and users will be notified in advance.
Cancellation Process: Users can cancel their subscription at any time by logging into their Eqvista account, navigating to the “Subscription” section, and selecting “Cancel Plan.” Upon cancellation, the subscription remains active until the end of the current billing period, and no further charges will be applied for subsequent billing cycles.
Billing and Pro-Rata Fees: If changes, such as an increase in shareholders, result in higher fees during the current billing period, users will be charged for these adjustments at the end of the period. For Enterprise plans with monthly payments, users must pay the balance for any remaining months if they cancel mid-term.
Data Management After Cancellation: Users are advised to download or transfer their data before account closure, as Eqvista is not obligated to recover or provide access to data after account termination.
Eqvista software adheres to several compliance standards to ensure accurate financial reporting and regulatory adherence:
ASC 718 (Stock-Based Compensation): Eqvista assists companies in complying with ASC 718, which mandates recognizing the fair value of employee stock options as an expense. This ensures transparency and accuracy in financial statements.
IRC Section 409A (Deferred Compensation): The platform facilitates compliance with Section 409A by providing accurate valuations of private company common stock, essential for setting exercise prices of stock options and avoiding significant tax penalties.
Rule 701 (Securities Act of 1933): Eqvista simplifies adherence to Rule 701, allowing private companies to issue equity compensation without SEC registration, provided certain thresholds are met. The platform offers tools to assess eligibility and generate necessary reports.
83(b) Election: Eqvista supports the 83(b) election process, enabling employees and founders to report the fair market value of restricted stock at the time of grant, potentially resulting in tax advantages.
