Common stock valuation
Common stock valuation gets an independent appraisal of common stock before options are granted, refreshed yearly or after a financing.
Common stock valuation gets an independent appraisal of common stock before options are granted, refreshed every 12 months or after a financing.
Contract
| Clause | Terms |
|---|---|
| Starts | The first option grant, a new round, or 12 months since the last valuation. |
| Prepared from | Financials from the Ledger and the cap table in Equity. |
| Done by | An independent appraiser. |
| Signs | The board adopts the value (Governance). |
| Result | A strike price recorded as a Decision. A grant below it is refused. |
| While held | Not used. Options exist only in a Startup with its own Company. |
Verbs
| Verb | Object | Event |
|---|---|---|
| Decision.create | Decision | Decision.created |
Interfaces
Example
A contract-analytics API prepares option grants for its first three hires. The appraisal sets common stock at $0.42 a share, the board adopts it, and all three grants price at that strike.