Overview of important features that will benefit your company
If you are unable or unwilling to self-fund your startup you belong to the majority of startups. To develop an idea into a product and a company behind it you will likely need the help of investors ready to fund your project in exchange for equity in the company behind it. In other words, you will need to be able to create and offer equity-based products to investors to raise the funds for your startup.
- Future equity
- Convertible notes
- Company stock
- No applications, No time limits, No funding goals to reach before receiving investments
Offering equity to investors should be considered carefully. All decisions are final and could have long-term implications on company ownership and control. The ability to design and test the impact of your investment products will help you avoid mistakes while allowing you to offer the best possible value to the investors.
- Design your own investment products
- Model the impact of different contract options on both company ownership and investor returns before committing to offering the product
- Use existing contract templates or upgrade to using your own
Under federal security laws, any offer or sale of a security or security derived product must be either registered with the SEC or in compliance with existing exceptions. Monetryx will help you ensure that your fundraising activity complies with the exceptions provided under Regulation D of the Securities Act when you offer and sell up to $5,000,000 worth of securities within any 12 months.
You can find more information on SEC regulations here.
- Ensure sales only to accredited investors
- Maintain company registry of all investors
- Ensure that all agreements and contracts are digitally signed and securely stored
- File Notice of Exempt Offering of Securities with SEC (Form D) automatically and in a timely fashion
Even if your company does not have any employees yet, it will be helpful to plan on the equity-based incentives you may offer to your future employees. You might also want to issue equity to all founders, set up incentive programs, and avoid surprises. If you already have employees you will find this feature very helpful in managing their equity-based incentives.
- Issue company stock to employees
- Issue stock options to employees and automatically manage applicable vesting schedule
- Issue stock incentive grants
- Ensure all grants are signed, recorded, and reflected in the company’s CAP table
When working with investors and customers it is often necessary to share files and information in a secure way. The secure data room allows you to share files and folders with third parties using trackable and revokable links. Further, through shared folders, you can also share company ownership reports and other company records as available on the Monetryx website in an easy, secure, and manageable way.
- Store important company-related information
- Flag selected files as public and make them available to interested investors while keeping a log of who and when has expressed interest in those files
- Create shared folders and generate specific trackable and revokable share links to send to people of your choosing
- Share information with or without a requirement for a signed NDA agreement
- Ability to follow up with users who have accessed shared information
As almost any equity-related decision needs to be approved by the Board of Directors, Monetryx offers a set of integrated tools that will allow you to conduct Board Meetings or run express unanimous board decisions on-line. Upon completion of those events, necessary logs are automatically created and made available for inclusion as a reference to any equity-based products designed in the system.
- Prepare and distribute board meeting agenda
- Prepare meeting minutes, take votes, and generate hard copy documentation
- Organize online single issue discussions, allowing decisions through written consent, and create applicable documentation
Interaction tools to help your company interact online with various groups (such as investors, employees, guests), present ideas, collect feedback, vote on multiple items, and more.
- Organize online presentations
- Get feedback on specific items
- Record and document online interactions for future reference
The Company Highlights feature offers the ability to compose a condensed description of your business that can be used to introduce your company to potential investors.
You can use the Company Highlights to prepare a single double-sided PDF leaflet to share with potential investors. The space in each section is limited to encourage you to keep statements brief and investor-specific. Further, you can use the interface to initiate a conversation with investment clubs, venture clubs, institutional investors, incubators, and accelerators on the Monetryx platform by clicking on the Apply for Funding link.
- Chose what sections of the company highlights should be shared with which audience
- Generate a brief PDF summary of your company to share with interested parties
- Apply for review to matching investment clubs, startup accelerators, and investment funds available on our platform
Your company’s public profile is your way to present your company to potential investors. You could think of it as a way to pitch your company to the broader public.
Your company’s public profile will be made available to a broader audience which will include various investors as well as current or future customers. It is best to be aware of that and approach the task of preparing your company’s public profile with a clear idea of what you would like to share with your target audience. Ideally, you will build a profile that speaks to both customers and investors.
- Present your company
- Announce financial goals
- Run a fundraising campaign
- Share your profile on social media
- Invite investors to review, check details on your Monetryx account and invest (Note: SEC rules apply)
If your company, like many startups, plans to offer employees stock options, you are going to need a 409A valuation of your company. Publicly traded companies can rely on the public stock market to determine the fair market price of the company. Privately held startup companies, on the other hand, cannot, and therefore they need an independent evaluation to determine how much their stock is worth.
The 409A valuation name comes from Section 409A added to the Internal Revenue Code (Code) by section 885 of the American Jobs Creation Act of 2004, Public Law 108-357 (118 Stat.1418). Section 409A generally provides that unless certain requirements are met, amounts deferred under a nonqualified deferred compensation plan for all taxable years are currently includible in gross income to the extent not subject to a substantial risk of forfeiture and not previously included in gross income. Read More..
- Request a 409A Valuation
- Schedule recurrent annual valuations
- Enter an externally sourced 409A valuation
- Automatic stock price update