?? What is your equity actually worth?

Hey there,

Vieje here. I was at Stonemill Matcha a few weeks ago and overheard two people talking about their startup equity (as is common occurrence in San Francisco…or maybe I’ve just developed a sixth sense for equity conversations at this point).

One of them had just gotten an offer to sell some shares in a secondary transaction and was asking their friend if the price was fair.

Their friend took a sip of their $10 matcha, thought about it for a second, and said, “Well… it depends.”

?I almost laughed because, honestly, that’s the right answer—but also the most frustrating one.

Because the reality is, private company stock doesn’t have a single price. Unlike public stocks, where you can check a ticker and see exactly what the market thinks, private company shares can have multiple valuations—each telling a different story.

?Like for example:

• The 409A valuation is for tax purposes—but it’s the price of common stock used to price stock options so companies may have an incentive to keep it low
• The last funding round price reflects what VCs paid—but only for preferred shares, which have different rights than common stock.
• The secondary market price is what buyers and sellers are agreeing to today—but demand fluctuates and not every company has an active market.?

So, which one is “right”? Well, like the mystery man I eavesdropped on at Stonemill was trying to convey, it depends on what you’re trying to do.

• If you’re looking at taxes, the 409A matters.
• If you’re considering a tender offer, compare it to the latest secondary market transactions and potential future value.
• If your company is talking about going public, look at how similar companies are trading.

No single valuation tells the whole story—but together, they give you a clearer picture.?

If you’re still confused, you’re not alone. But Secfi might be able to help you out here.

?? Introducing...drum roll please…Private Market Insights!

As of this week, our new Private Market Insights feature, powered by Caplight’s private market data, is live in the Secfi platform.?

?Now, instead of relying on just one number, you can compare multiple valuation data points side by side in your Secfi profile, helping take the mystery out of the age-old question: What is my stock actually worth?

?? How Private Market Insights can help

Outside of being able to give better advice than that guy in the coffee shop, understanding different valuation types can help you answer questions like:

• Should you exercise your options now or wait?
• Is the price in a tender offer fair?
• What’s a reasonable expectation if your company goes public?

For example, let’s say your 409A valuation is low, but the secondary market price is much higher. That might signal there’s strong demand for shares, but it also means that selling today could trigger a larger tax bill than if you exercised and waited a year. On the flip side, if the preferred price from the last round is outdated, it might not reflect what someone would actually pay today.

Being able to see all of these numbers in one place helps you make smarter, more informed decisions instead of trying to piece it together from outdated spreadsheets, incomplete data, or random advice on the internet (or from your friends).

?? How to check your Private Market Insights

It’s live in your Secfi profile now. Just log in, navigate to your equity dashboard, and explore the different valuation data points for your company.

Check your Private Market Insights

Not every company will have the same level of data available—later-stage companies usually have the most insights—but this is a big step toward bringing more transparency to private company stock valuations. We’ll continue to roll this out as more data becomes available so if you don’t see your company now, keep checking in the future.

Would love to hear what you think! If you check it out, reply to this email and let me know your thoughts.

Until next time, Vieje

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