You can draft and issue online ASA or SAFE to your investors, track their signatures and sync the transactions automatically with your cap table once the investments are closed.
In this flow, you will be prompted to use Carta's templates for SAFEs and ASAs, but you can also use your own template.
1. Navigate to Fundraising > Unpriced investments.
2. In the Open investments tab select which instrument you will issue: SAFE or ASA.
Issuing Unpriced SAFE
1. Select or create an investor.
2. Select the template that will be used to issue the SAFE. Once a template is selected you are able to preview the document. Click Continue to proceed.
3. Add investment details of your SAFE.
- Share class: share class the convertible is expected to convert into.
- Investment amount.
- Conversion discount (%): discount on the share price of the future financing round which triggers conversion of the note, a number between 0 and 100.
- Valuation cap: a valuation cap results in an upper limit to the conversion price. This is relevant when a discount on a future share price has been agreed. If 'valuation cap' < 'valuation of the future round' x 'conversion price discount', valuation cap should be used for determining conversion price.
- Funding round: the funding round of which the convertible note was issued, if relevant.
- Priority key: if multiple transactions happen on the same day, this field may be used to give an explicit priority when sorting, in order to avoid negative balances.
- Notes: Notes about convertible note visible to administrator and note holder.
4. Once the applicable details are inputed, click Save draft or Send for signing.
5. The SAFE will be sent for signing to the investor and then to the company signatory.
6. Once signed by both parties, the SAFE will be Pending issuer approval. Click the action menu to the right of the instrument to Confirm payment.
Once the payment is confirmed, you can find the details of the SAFE by navigating to Ownership > Convertible notes.
Issuing Unpriced ASA
1. Select or create an investor.
2. Select the template that will be used to issue the ASA. Once a template is selected you are able to preview the document. Click Continue to proceed.
3. Add the investment details of your ASA.
- Share class: share class the convertible is expected to convert into.
- Investment amount.
- HMRC Scheme.
- Conversion discount (%): discount on the share price of the future financing round which triggers conversion of the note, a number between 0 and 100.
- Valuation cap: a valuation cap results in an upper limit to the conversion price. This is relevant when a discount on a future share price has been agreed. If 'valuation cap' < 'valuation of the future round' x 'conversion price discount', valuation cap should be used for determining conversion price.
- Base valuation: the valuation at which this ASA will convert into equity if it converts at the longstop date and no valuation cap is set.
- Longstop date.
- Qualifying financing: if specified, this is the amount of a future round which can and will trigger conversion of the note according to terms in the agreement.
- Maximum ASA investment from all other investors: maximum total investment amount you can receive from all other investors through ASAs with substantially the same terms as this ASA.
- Funding round: the funding round of which the convertible note was issued, if relevant.
- Priority key: if multiple transactions happen on the same day, this field may be used to give an explicit priority when sorting, in order to avoid negative balances.
- Notes: Notes about convertible note visible to administrator and note holder.
4. Once the applicable details are inputed, click Save draft or Send for signing.
5. The ASA will be sent for signing to the investor and then to the company signatory.
6. Once signed by both parties, the ASA will be Pending issuer approval. Click the action menu to the right of the instrument to Confirm payment.
Once the payment is confirmed, you can find the details of the ASA by navigating to Ownership > Convertible notes.
Using custom templates
A document set is a group of documents you can reuse in online issuances with dynamic documents, which are reusable templates with Carta placeholders that Carta fills in with personalised data for each investor, as well as static documents which do not require personalisation.
1. Navigate to Fundraising > Unpriced investments > Documents.
2. Click Add document set.
3. Select the document type and name the document set. The document types available are:
- ASA issuance (individual stakeholder)
- ASA issuance (corporate stakeholder)
- Post-money SAFE issuance (corporate stakeholder)
- Post-money SAFE issuance (individual stakeholder)
4. Click Add Dynamic Document to add the dynamic document (which needs to be edited with the relevant placeholders). Please note the only supported document type will be DOCX.
In order to make your own dynamic document, we recommend you download an example file, make your edits and upload. You can also find a list of available, required and optional, placeholders by expanding the View available placeholders menu.
5. Once the document is added, click Save then Next to review the placeholders and preview the document.
6. Click Finish to create the document set.