Estimated value calculation in the stakeholder dashboard

We are making it easier for both you and your stakeholders to track the value of their equity by enhancing the ways this will be calculated and reflected on the platform.

Going forward, the value of your stakeholders’ portfolios will be automatically based on the valuation at your funding rounds if a custom valuation has not been added.

1. How did it work previously?

Previously, stakeholders were only able to see the value of their investments if a custom valuation (formerly known as public valuation) has been added and only if this feature was enabled by the administrators.

As it was, we were not able to communicate or show how healthy their investments are and whether they have gained or lost any value since they invested. This means that the graph was very simple → only showing what you have invested and the value prop becomes weak.

2. How has it changed?

We are using the information related to the funding rounds to show the value of the stakeholders' holdings in the absence of a custom valuation.

You will be able to enable or disable it completely, based on the stakeholder category - employees (grantholders) and shareholders / noteholders (investors).

Some of the terminology of the valuations has changed as follows:

• The Company valuations tab on the Valuations section is now divided in two categories - Compliance valuations and Equity valuations

• The Equity valuations tab will show both custom valuations (formerly known as public valuations) as well as historical valuations. 

• Public valuations are renamed as custom valuations 
• Historical valuations (also known as funding round valuations) are a new concept -> they will be automatically generated based on the maximum share price of a funding round calculated across all share issuances, convertible loan notes and grant exercises in that particular funding round. 
• The Compliance valuations tab shown on the Valuations section will show any valuations needed for filing purposes such as UMV, AMV or 409a's.

There are different scenarios in which different data is used to show the value of your stakeholders' investments:

• If you will enable sharing of valuation as well as sharing of funding rounds, even with no custom valuation (formerly known as public valuation), your stakeholders will be able to see the monetary value of their holdings
• Historical valuations (funding round based valuations) will only be shared with investors if the Valuations setting is enabled. If the Valuations setting is disabled, both custom and historical valuations will not be shared with the stakeholders.
• You can only have one custom valuation at any given time and we will use the latest one going forward besides the funding round valuations.

You can find more information on how to add a valuation here.