New valuation methodology for ASC820 customers

We’ve released a new valuation methodology to help Investors determine the fair value of their holdings. Investors can now apply an equity adjustment to the post-money valuation. Equity adjustments are generally applied to backsolve or post-money valuations when the last preferred financing round was greater than 6 months ago and there is reason to believe that the market has changed since the last financing was raised, or when the portfolio company does not have sufficient revenue to support a meaningful indication of value.

To use the post-money equity adjustment methodology to value a portfolio company, follow these steps:

  1. Navigate to the portfolio company’s valuation page.
  2. Create a new valuation.
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  3. Add your public comparable companies. These will be used to estimate the equity adjustment.
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  4. Navigate to the Value company page and select the post-money valuation methodology. Indicate the weighting you would like applied and save!
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  5. Once saved, you will see a new page where you can record the post-money valuation, apply the equity adjustment, and include an explanation as to why you are applying the equity adjustment.
    Screen Shot 2019-05-31 at 4.18.38 PM.png

New custom equity plan report

Now Legal and Company administrators can export a new customizable equity plan. There are 40+ columns to choose from, and you also have the ability to select multiple plans to export. The output file is a spreadsheet with each plan being its own tab.

The Custom Equity Plan report is the last one on the Equity Plan Analysis section, inside the Reports item, under the Capitalization dropdown.

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