🟡 Inflexible yield calculations

It appears that the current platform calculates yield on the basis of initial invested capital, and cash consideration appears to be the sole consideration field that is entering into the Initial Invested Capital field. This is problematic for the yield calculation because to the extent that units are issued in exchange for non-cash consideration (e.g. rollover units issued as partial consideration in exchange for business combinations), the system prevents the user from both entering the equity value as “other consideration” and from calculating yield thereon.

Utilizing initial invested capital as the base for purposes of yield calculations creates inflexibility with respect to the terms of yield within a given issuance. For example, if 100 units are issued at a fair value of $15/unit ($1,500 initial invested capital), but the agreement specifies that yield should be based on an original cost value of $10/unit, ($1,000), then currently the user’s only option for appropriately calculating yield is to enter false amounts of consideration ($1,000 cash and $500 other - in order to exclude the $500 delta between fair value and issue cost from the Initial Invested Capital field). The result may be that yield calculates correctly but that the cap table now shows manipulated totals for consideration types and invested capital.

It seems that the system has various fields that could be leveraged to provide for both accurate invested capital totals and yield calculations through designation of explicit per unit values for purposes of yield calculation (e.g. price paid per share, cost basis, share class original issue price), but that the capabilities don’t currently exist.