Converting Notes to Shares
Convert SAFEs or convertible notes to shares when your next priced round closes. Cake can calculate shares automatically using the note's terms, or you can enter the exact conversion event manually.
Convert a note
Go to Cap Table and select the SAFEs or Convertibles tab (depending on the note type).
Find the note and click Actions → Convert.
Choose your conversion method:
Auto calculate: Cake calculates shares based on the note's terms (valuation cap, discount rate, etc.)
Confirm the share class, conversion date, valuation, and price per share
Review the calculated number of shares
Click Convert SAFE or Convert Convertible
Manual: You enter the exact number of shares to issue
Enter the number of shares for the conversion
Update the total amount paid if needed (e.g., including accrued interest on a convertible note)
Confirm the conversion date and share class
Click Convert
What happens next
Once converted, the note holder automatically becomes a shareholder and appears under the Shareholders tab on the cap table. The original SAFE or Convertible Note is marked as converted. You can then issue a share certificate to the new shareholder.