Companies are valued with industry-standard methods. For early-stage companies, valuations are generally marked up or down to a company's latest priced financing round, as disclosed to us by portfolio companies or other investors. While AngelList’s valuation sources are believed to be reliable, we do not undertake to verify the accuracy of such valuations. Companies that have not received investments in a priced round since the last mark are held at the last mark or marked down at our discretion according to our valuation policy. Our valuation policy typically calls for marking an investment to zero upon news of impairment or a significant pivot. Our valuations typically do not account for liquidation preferences and other non-financial terms that may affect returns. Investments in later-stage companies may be sent to a third-party for valuation if (i) the company’s estimated value is over $100M, (ii) the investment is estimated to be worth over $10M and (iii) 24 months have passed since the last investment. Smaller investments in later-stage companies are valued using the same methodology used for early-stage companies.
We generally only write up valuations in connection with priced sales of company equity, such as at a Series A or later financing.
Valuations reported in the news are often based on a variety of sources - sometimes credible, sometimes not. The valuation listed on the dashboard is based on AngelList’s valuation policy.
Our valuations are generally based on the price per share paid in a round. This is because you can't accurately assess the change in value of a position based solely on the post and the pre-$ valuations.
PPS = Post-$ Valuation / Post-$ Fully Diluted Capitalization
PPS = Pre-$ Valuation / Pre-$ Money Fully-Diluted Capitalization
If the Series A Post-$ fully diluted was the same as the Series B pre-$ fully diluted, then you could simply divide the Series A Post-$ by the Series B Pre-$ to get the increase in valuation. But they almost never are the same. Here are a couple of reasons why:
• The Series B pre-$ fully diluted typically includes a 10-20% post-$ available stock plan. This is mostly due to convention.
• The pre-$ fully diluted will often include convertible notes or SAFEs issued in between the two rounds.
• If additional Series A shares were sold in the interim, or the company increased the existing stock plan in the interim, the Series B pre-$ fully diluted would be bigger.
The value of your position will also be affected by carried interest and any fees paid in connection with the investment.