How a Sloppy 409A Valuation Nearly Cost This CFO $600,000

  What is the real cost of a 409A valuation? As startup-focused valuation providers, we often talk to founders and CFOs of early-stage companies who suggest a couple thousand dollars is sufficient to obtain a 409A valuation. While it may be true that’s a price quote from a low-cost automated provider, it’s rarely the real … Continued

WeWork Was Never “Valued” at $47 Billion

  The unraveling of the coworking company WeWork’s initial public offering (IPO) has been well-covered in the media and blogosphere. Various outlets dissected WeWork’s initial registration statement (S-1) back in August. Then the drama began: Slowly at first, then seemingly all at once. One element of the story, however, has been poorly covered by the … Continued

Is Carta’s Pre-Money Valuation Reasonable?

In December 2018, Carta announced a Series D preferred financing round raising $80M and valuing the Company at a Pre-Money of $800M. As valuation specialists, we wanted to take a deeper dive into the metrics surrounding this latest financing. Based on public information, we estimated Carta’s revenue for 2018 to be roughly $25M, which implies … Continued

Will eShares be able to continue to support Silicon Valley Bank Analytics valuation clients after acquisition? [Updated September 21st 2017]

eShares has officially “purchased” SVB Analytics and wrote a surprising blogpost with several strange and potentially alarming comments about the acquisition. Here are our key reflections on eShares’ blog post: Arbitrary Deadlines – In the press release, eShares gives an arbitrary and very short deadline for previous SVB valuation clients to sign up with them … Continued

Downside of Venture-Backed Common Investments

Raising common stock for first rounds of venture investments can have large, unintended consequences on employee compensation and common stock valuations, especially for 409a valuations.  The Boston Business Journal released an article discussing how Jamie Goldstein’s new fund, Pillar, hopes to better align the interests of management and investors by purchasing common stock instead of … Continued

409A Valuation Guide – Importance of 409A Valuations

409A Valuations have been targeted in recent years by big box cap table software providers and have been used as a marketing ploy by these venture-backed behemoths to capture clients. The market has been flooded with ultra-low cost “automated” 409A offerings in an aggressive effort to try and consolidate the valuation market and reduce the … Continued