Question 1

Our round just closed. When do we need the valuation?

Accepted Answer

Before the next grant. Any valuation dated before the close is invalid from the day the round closes, and grants made in that gap are the ones that surface in diligence.

Question 2

Why is our common worth so much less than the seed price?

Accepted Answer

Because the seed price buys preferred stock with a liquidation preference and, usually, other rights common stock does not have — plus common stock has no market to be sold into, which the marketability discount prices.

Question 3

Does an extension or a bridge count as a new round?

Accepted Answer

If it is priced, yes. A bridge on notes is a material event to assess rather than an automatic revaluation trigger.