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How is there a market rate if his startup was not publicly trading? The nominal value of the shares in my startup are £0.01. Sure, that's not what we've sold s
by fastball 5y ago
How is there a market rate if his startup was not publicly trading?
The nominal value of the shares in my startup are £0.01. Sure, that's not what we've sold shares for, but the price we have sold them for was purely what the buyer was willing to pay for them.
- GordonS 5y agoSo, I was reading into this a bit recently after getting an equity offer (also in the UK). The "fair market value" is open to interpretation, but if the inland revenue come calling, you need to be able to explain it. For a startup with no assets that has not previously sold shares, £0.01. Is just fine. But if you've got assets, or you've previously sold shares as more than that, then quite clearly the market value is more than a penny. I mean, what better definition of "fair market value" is there than "what the buyer was willing to pay for them"?
- FabHK 5y agoFunding rounds constitute a valuation.