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Managing Rounds

Types of events

When you click on + Add under an investment round, there are multiple options available

  • New Round: Add another financing round by the company

  • Ownership Update: Override Tactyc's internally calculated ownership

  • Valuation Update / Change: Override Tactyc's internally calculated FMV

  • Secondary Acquisition: Acquire secondary shares in the company

  • Partial Sale: Realize a partial sale

  • Dividend, Interest or Distribution: Capture cashflow form the company i.e. dividend, interest or distributions

Adding a new round

To add a new historical round to an investment, open the investment and go to the last round.

  1. Click on Add > New Round on the prior round. This will create a new round called New Round.

  2. Click on Edit for this new round and enter the parameters for this round.

  3. Click on Close when complete and Save Changes

Projecting Future Rounds

  • Click on Future from the Actions menu

  • Select the following attributed to project future rounds

    • Sector Profile: Which sector profile to pick future rounds from?

    • Starting Round: What should be the first future round?

    • Graduation Rate: Should future rounds have graduation rates from the sector profile or should the graduation rates be 100%?

    • Starting Date: What should be the date of the first future round? You can either select a custom date or use the Last Round option which will create a future round based on the time to graduate since the last round.

Tactyc will automatically add new rounds to your investment from your selected starting round.

Reserve Management

  • Reserves for future rounds can be set by entering them as Investment Amounts in future rounds

    • Alternatively ,clicking on the Reserve Pro-Rata option for the future rounds will automatically calculate and the set the amount needed to maintain ownership.

  • Total amount of follow-on reserved for a Performance Case are shown under Results

  • Note that the actual amount of reserves allocated for a deal are probability-weighted. For e.g. if you have reserved $1mm in a future round, but the graduation rate into the future round is only 40%, the amount reserved will be $400k ($1mm x 40%)

Managing Graduation Rates

Graduation rates represent the likelihood of the company reaching that round (and not failing prior).

  • The MOIC, IRR, FMVs and Exit Proceeds are all weighted by the cumulative graduation. Increasing graduation rates will improve performance (IRRs, multiples, future FMVs and exit proceeds) and vice versa.

  • To change the graduation rate of a round, click on Edit to open the Event Editor and then change the Graduation Rate field

  • To remove all graduation rates (i.e. set them to 100%), click on the 100% button from the Actions toolbar

Entering Share Level Data (Optional)

If a round is priced and you have the cap table details, you can directly enter share prices and share counts by turning on the Enter Share Data toggle from the Event Editor. Tactyc will automatically calculate the round valuation, round size and your investment amounts based on the entered share data.

Note: Share Mode is disabled for unpriced rounds such as SAFEs and Convertible Notes.

Tranched Rounds

There may be instances where your fund has invested in the same round at the same terms but in multiple tranches. There are 2 recommended approaches to tackling this and the decision depends on your reporting preferences.

Approach 1: Combining tranches into a single round

  • In this approach, you combine the 2 tranches into a single round. You can use the Notes field to denote that the investment was executed in multiple tranches.

Approach 2: Defining two tranches as new rounds

  • Create multiple rounds reflecting separate investments into the company. The pre-money valuation and round sizes will need to be adjusted accordingly. For e.g. the post-money from the first tranche should become the pre-money for the next tranche.

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