---
title: "What Is Common on As-Converted?"
term: "Common on As-Converted"
description: "Common on as-converted is a cap-table comparison that treats all preferred shares as if they converted to common, showing fully diluted ownership on a single-class basis."
date: 2026-07-25T00:00:00.000Z
updated: 2026-07-25T00:00:00.000Z
topics: ["venture-capital"]
source: https://venturecapitaltracker.com/glossary/common-on-as-converted
---

# What Is Common on As-Converted?

> Common on as-converted is a cap-table comparison that treats all preferred shares as if they converted to common, showing fully diluted ownership on a single-class basis.

**Common on as-converted** expresses ownership as if all preferred stock converted to common, on a fully diluted basis including options and warrants.

## How it works

Cap tables list separate preferred series with liquidation preferences and conversion ratios—usually 1:1 unless adjusted. An as-converted column applies those ratios and adds unissued option pool shares to show total diluted common equivalents. A founder might hold 40% of outstanding common but 28% as-converted after Series A and B preferred and the pool. Investors quote ownership "on an as-converted basis" in term sheets for pro rata and anti-dilution context. At exit, preferred converts when common proceeds per share exceed the preference; until then, as-converted is hypothetical for economics but real for many voting calculations if preferred votes on an as-converted basis.

## Why it matters

- **Founders:** Dilution from new rounds hits as-converted percentages hardest. Negotiating option pool increases in pre-money valuation uses as-converted math.
- **Investors:** Ownership targets and pro rata rights are tracked as-converted. Misaligned cap table exports cause closing delays.
- **Operators:** Equity grant sizing and 409A discussions reference fully diluted as-converted share counts.

## Common mistake

Confusing as-converted ownership with cash proceeds at exit. High as-converted ownership for preferred still yields zero if liquidation preferences absorb the sale price.

## Related ideas

Common stock, preferred stock, fully diluted, conversion rights, and liquidation preference are the adjacent cap-table concepts.

## FAQ

### What is common on as-converted in simple terms?

Imagine every preferred share turned into common right now. Common on as-converted shows each holder's percentage of the company on that fully converted, fully diluted basis.

### Why does common on as-converted matter?

Liquidation preferences affect cash at exit, but as-converted view shows voting and economic split if everyone converts—critical for dilution math and option pool sizing.


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Source: https://venturecapitaltracker.com/glossary/common-on-as-converted