Learn how to add an equity investment
To add investments to a portfolio company, you must be a VC admin or a VC member who has access to the fund to which your company is assigned.
With an equity fund investment, you acquire partial ownership of a private company by purchasing their shares.
- Navigate to the top bar and select APP -> then go to the left side menu and click the Investments page.
- Hit the button Add Transaction at the top right of the screen or click the plus icon next to a company you want to add an investment to > click Equity investment.
- Fill in required information: Target company, Date of the transaction, Fund, Investment amount and number of shares acquired. Rundit calculates Price per share automatically based on investment amount and number of shares acquired. You can also select the Person responsible if the person is a user under your Rundit organization account.
- Click Next to proceed to the Additional Information step.
In the Additional Information step, you’re able to elaborate details about the investment. Investment rationale is an explanation for why an investment is worth making - a reasoned argument for a particular investment and how it fits your investment strategy. Transaction notes and comments can include anything related to that particular investment.
- Click Next to proceed to Ownership/ Valuation Update.
In the Ownership/ Valuation Update, you’re asked to determine the post transaction information on Total number of shares in the company, valuation method and funding round details.
- Insert the amount of fully diluted shares to Total number of shares in the company. Rundit calculates the Company Post-Money Valuation based on the total number of shares in the company and price per share.
- The Ownership is calculated based on the total number of shares owned by the fund and total number of shares in the company. If you’ve added an equity investment from multiple funds, you can see the number of shares and the ownership % in the company per each fund.
- Tick Yes to the question “Is this ownership / valuation update related to company’s funding round” to include information about the funding round in the transaction. You can enter the funding round, your role in the round and information on co-investors. To complete adding the investment, click the add transaction button.