5 ms·
> Price, as determined by a third party, is going to be BS. FWIW, 409a valuations are calculated by third parties. Maybe not as efficient as a market, but a we
by kenrose 5y ago
> Price, as determined by a third party, is going to be BS.
FWIW, 409a valuations are calculated by third parties. Maybe not as efficient as a market, but a well accepted standard.
- anamax 5y ago409A valuations are almost always paid for by a party that has some interest in the outcome being high (or low). Moreover, said party usually decides who does the 409A valuation.
- Nelkins 5y agoMy limited experience has been that 409a valuations are extremely different from what investors pay (what investors pay per share is much more). I am curious if there has been much written about why this is.
- munk-a 5y agoIt mostly comes down to conflicts of interest.
- daniel-cussen 5y agoValuations? You realize the valuation of a small company is much, much harder than the valuation of a public company right? I know a valuator who can take the information of a public company and tell you to about 10% its price on the stock market. 10% isn't good enough for playing the stock market, but with small companies the error factor is like 1000. Meaning your unicorn could actually be worth a million (firesale of assets, IP to patent trolls, fighting over scraps of the VC money) or a trillion (FAANG will now be referred to as FAANGU, U being for Unicorn corporation, your company). It might be more than 1000, it's really all over the map, I can say with certainty though it's less than 1000000.