Enterprise clients are able to set a new valuation, round by round, for each company in which they invest.
By default, Seraf uses the latest round's share price to determine the current valuation of equity holdings and keeps notes, SAFEs and fund investments at their original cost basis. However you can override these default valuations to show increases or decreases in value, such as the value of a note with accrued interest, a note or SAFE if it were converted, warrants or options if they were exercised, or a change in value for any number of other reasons to reflect the current value or a future payout.
Keep in mind that the most recently dated share price (or multiple) will be used to determine the current value of your holding. Be sure to date your valuation the most recent of all the company's rounds or other valuations if you'd like for it to be used for the current valuation. Any share price (or multiple) dated in the future will not be factored into the valuation equation until that date occurs.
Follow the instructions below to record a round by round valuation for a company in your portfolio.
To set the valuation for each round in a company:
- Use the Add New button on the left sidebar to add a new Company Valuation or visit Portfolio Management and select the tab for Company Valuations. This will bring you to a table of the current companies in which you are invested and their current valuation based on the latest share price, methodology and date. Note this table only allows you to change the value of all equity rounds for a given company.
- Click on the name of the company you’d like to re-value on a round by round basis. This will bring you to the company's Investment tab within the company's record, where you will see your Current Holdings, Exited Rounds and Historical Valuations for the company.
- Click the Actions button on the top right.
- Select "Create and Edit Round Valuations" from the drop-down options.
- Enter the New Price. Note that for stock rounds "New Price" refers to the share price, while for non-stock securities, such as notes, "New Price" refers to the multiple of the number of units of the security (e.g. each dollar of principal amount of a note or SAFE, or each share of stock for which a warrant may be exercised).
- Select the New Methodology from one of the drop-down categories:
- Mark to Market
- 409a Valuation
- Company Accountant Letter
- Comparable Companies
- Discounted Cash Flow
- Other (write in description)
- Enter the New Date (MM/DD/YYYY) for the valuation.
- Save your entry.
- Repeat for as many rounds as you'd like.
- Once you’ve completed all of your valuations, be sure to Update Calculations. This step is critical to ensure all of the charts and graphs throughout Seraf reflect the changes in valuation.
After you've entered two or more valuations, you'll see a valuation chart on the company's or fund's profile page. Plus, you can access the history of a specific company's valuations recorded by viewing the Investment tab of the company record, where you can also make edits and even add a memo to your valuation. You can also download a history of ALL valuations recorded in your account by going to the valuations pages found within Portfolio Management and clicking the Download button on the top right.
Note that Professional Portal account holders can set valuations for companies in which they own shares of stock and for each fund in which they've invested, but they can not set valuations round by round. Enterprise clients can set the general valuation for a company or fund in their portfolio as well as set valuations round by round, as outlined above.
Seraf's custom valuations round by round feature is available to Enterprise clients only. To upgrade your account or to see a list of additional features, log into your account, visit Account Management, and select "Upgrade Now" or contact email@example.com.