How do I set the name, number and price of my profit participation rights?
Name, ticker and number when setting up, the price for each offer.
You set the name, ticker and number of your profit participation rights when you set them up during onboarding. You only determine the price per profit participation right later, individually for each private offer.
Name and ticker
The name and ticker identify your profit participation rights. Both can be chosen freely and can include your company name, for example. The ticker is the short form of the name and consists of three to five characters (e.g. BGT).
How many profit participation rights should I set?
The number determines the maximum number of profit participation rights that can be issued. We recommend setting as many profit participation rights as there are GmbH shares: with 25,000 GmbH shares, for example, 25,000 profit participation rights. The exact number depends on your situation and goals. Helpful questions are:
- How much capital do you want to raise?
- How much should the existing shareholders be diluted?
Profit participation rights do not change the distribution of voting rights because they carry no voting rights. Economically, however, they dilute the existing GmbH shares.
How is the price per profit participation right calculated?
You set the price in each private offer. It is derived from the company valuation you determine yourself (How do I set my company valuation?). A formal valuation by an auditor is usually not necessary: each offer reflects the valuation you apply at that time and that your investors accept.
The formula is:
Price per profit participation right = company valuation / (fully diluted capitalization incl. profit participation rights already issued)
Example: A company is valued at €10 million. It has 25,000 GmbH shares entered in the commercial register, 3,000 profit participation rights already issued* and no further options, convertible loans or similar. This results in a price per profit participation right of approximately €357.14.
€10 million / (25,000 + 3,000) = €357.14
*Profit participation rights are only taken into account once they actually exist, i.e. from the first investment closed via beel. If no investment has been made yet, this value is 0. How the price is made up: How much is a profit participation right worth?