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When I say "current valuation" I really mean "best value": at what valuation could the company realistically raise money? For public companies, it would be the
by throwaway748937 12y ago
When I say "current valuation" I really mean "best value": at what valuation could the company realistically raise money? For public companies, it would be the share price. For companies close to IPO, it would be very near the strike price. For start-ups, it's likely much higher than the strike price... more along the lines of the last round of funding (if recent and no big developments) or what a reasonable estimation would be if they raised right now.
I do appreciate the high five figure datapoint you've provided.
- sokoloff 12y agoOK, I was confused as to your specifying that it wasn't FMV. What you're describing I agree is the most useful value to use when thinking about this topic (but I think is also the FMV).
- throwaway748937 12y agoI'm under the impression that "FMV" is the same valuation given at a 409A. The name for the other value -- the value that the company is likely to receive given a round of fundraising -- I'm unsure of. I call it "current valuation" or "best valuation" or "value that the company would receive were it to raise money".
- sokoloff 12y agoAh. A 409A is supposed to represent the FMV on that date. 5.99 months later, I'd argue that the FMV is more likely than not different. But I now understand what you first said. Best wishes on your search!