Valuations User Guide

Recording valuations in Venturelytic are important to keep track of your portfolio. With valuations in Venturelytic you can calculate the fair market value of your investments and and follow the fair market value growth over time.

How to record a Valuation

On the Monitoring Record navigate to the Valuation tab. Here you find a list view with already registered valuations.  Click on “New Valuation” to proceed. In the next window choose 'Equity Valuation'.

The valuation screen that pops up is divided into 3 parts:

1. Valuation Information

2. Preferences

3. Fair Market Value Calculation

1. Valuation Information:

Here the user chooses the status of the valuation, the valuation method (e.g. Last Investment Round or Market Multiples) and Start & End Date of the valuation. The Valuation Date is automatically set to the day of recording.

In the field 'Equity Value' the user has to add the estimated value of the portfolio company. In the shareholder picklist are the shareholder previously entered in the cap table. Most commonly the user would choose his own fund or entity.

Active Valuations: 

The goal is to have valuations covering all dates and every shareholder can have only one active valuation.

2. Fair Market Value Calculations

The Total Ownership Percentage is automatically updated, depending on the selected Shareholder. Next the Equity Value is added. This becomes automatically the Ordinary Share Value. Multiplying by the Ownership-Percentage, the final Shareholder Value is calculated, which translates into the FMV. The Ownership Percentage can be edited, if needed.

3. Preferences

When adding a preference, the user can first define the instrument name, the share class in question and the total preference value. Since a preference is tied to a specific Share Class, the Ownership by Share Class comes into play. The Total Preference Value is multiplied by the percentage and results in the Preference Value for the selected Shareholder. However, the Total Preference Value is distracted from the Equity Value, thus resulting in a new Ordinary Share Value for the same Shareholder. Both values combined make up the total FMV.

4. Corrections

If needed, there are two correction fields that can be edited as needed. 

Summary:

The final FMV calculation looks as follows: