The Securities Builder is a tool in Pulley designed to make issuing new securities easier than ever, while helping you keep compliant throughout the process by tracking each step, such as signature collection and approval by the board of directors.
Here's an overview of the feature, using a new SAFE issuance from the perspective of a legal team member as an example:
What can I do in the Securities Builder?
The main purpose of the Builder is to issue new securities, but it's also an all-in-one hub for ongoing work related to those issuances.
You can track how far along in the process each pending security is, and there will be a button in the "Action" column to take you to the next step in the process.
How do I issue a new security?
You can start a new security using the +New Security button, on the top of the display.
You will then be asked to select the type of security that you are looking to add, each showing a brief overview of the steps involved.
Each security type has it's own work flow, but the generalized process would be:
Set up company signatories (first time only per security type)
This is the person that will sign the documents on behalf of the company. There is one (and only one) designated signatory for each security type.
Input security details as a draft
The details will vary according to the security type, but some of the general required fields include the stakeholder name, share amount or principal investment, and issue date. Most notably, there is also the template selection for the document the signatures will be stamped on.
Select or Create a new template for the documents
In order to generate the document, you need to use a Pulley template. We have ready-made templates for Options and RSAs you can use to save time, but we always recommend having your legal counsel review these with your company's specific situation in mind before using them.
For SAFEs, we have all the templates provided in the Y Combinator website already formatted for Pulley use.
In all cases, you are also able to upload your own custom documents as a template, which is the recommended approach to take.
Seek Board Approval (for Options only)
When issuing Options, you will be taken to the Board Approval interface before being able to collect signatures.
Here you can add the Board Member's emails, go back to edit the drafts if any details need to be revised, and when ready, sending the emails to the board for their signature.
Obtain Signatures
This is the final step for all securities. After drafting and getting the board approval, all that's left is collecting the signatures from the company and stakeholders.
In this page you can review the details one last time, and generate a preview of the finalized documents the signers will receive.When ready, you can click "Send to Signatories" to trigger the emails. Note that the emails will be sent to the Company and the Stakeholder concurrently.
At this point the security will also be added to the live cap table, but the attached document will only update to display the signatures once these are collected.
If you have any questions or feedback, don't hesitate to reach out to support@pulley.com. We'd love to assist with any issues, or hear your thoughts on how we can improve!