Open-Cap-Table-Coalition
Fully Diluted Shares and % Fully Diluted should include conversion shares for Outstanding Convertible Securities such as convertible notes or SAFEs.
based on OCF standard, if Fully Diluted Shares and % Fully Diluted should include conversion shares for Outstanding Convertible Securities such as convertible notes or SAFEs.
Since the conversion rate of SAFEs and convertible notes will depend on the terms of a future event (e.g., the financing that will trigger their conversion), modeling their conversion requires making some assumptions around the terms of that future financing (for example, the pre-money valuation, the required increase to the option pool, etc.). Does the OCF model have capacity to store or input assumptions about a potential future financing in order to determine the conversion shares for the SAFEs and convertible notes? We do this for clients sometimes, but we have to talk with them about the assumptions and how the result may not reflect a realistic conversion of the notes and SAFEs.
