Overview
In this article, you will learn about how ORCA can help you manage multiple share classes. When it comes to legal entities, it's not uncommon to have several share classes. These classes can include:
- Different financing rounds, such as Series A, B, and more.
- Preferred and common shares.
- Dividend shares or warrants.
By using ORCA, you can easily manage these various share classes, and makes it simple to:
- Track and monitor each class's ownership, making it easier to keep your records organized over time.
- Create new share classes and add ownership to a specific share class.
How to manage Share Classes
How to create new Share Classes
You can add additional data, such as equity capital, to share classes either in the "Detail View" or directly while entering the event. Follow the steps below for more details:
- Open the "Detail View"
- Click on "Valuation"
- Add the following information:
- Value: Different valuation for the company or per share
- Total number of shares: The equity capital (total available shares) for each share class
- Share classes: The different share classes, including abbreviation and date of creation.
- Open “Share classes” and create the different classes
How to add ownership in a specific share class
When entering a new ownership event, you have three options. You can select a percentage ownership, or a specific share class, or you can directly create a new share class.
How to add the total number of shares (equity capital)?
Equity capital is necessary if you wish to display the percentage of a company that you own. For instance, if you own 500 A and 200 B shares, the system cannot calculate the percentage of ownership without equity capital.
How to add a valuation per share for each share class
If the valuation per share varies across share classes, you can track them in the "Value" tab:
- Select the value type.
- Use "price per share" to determine the value per share.
- Multiply the number of shares with the value per share for each share class.
How to add a voting right to each share class
You can now assign a unique voting weight factor to each share class. For instance, Soonicorn LLC has had multiple investment rounds, and the founder's shares carry increased voting power. You can visualize this in the structure by changing the "amount type" from "ownership amount" to "voting rights". The updated voting percentage will then be displayed.
How to Update the Voting Rights
- Open the "Detail View" of a company.
- Access the "Valuation" section.
- Select "Voting Rights".
- Input the voting rights weight (multiplication). The standard value is always 1.
How to Visualize Voting Rights
- Select the Settings button located at the bottom right of ORCA.
- Choose the "Amount type" option.
- Switch the view to "Voting rights" to observe the amount of voting power an owner possesses in this specific company.
