Company Valuation Scenarios

Introduction

This guide covers managing company valuations within the Eldison platform for admins and operators across various company stages and sizes.

What is a Company Valuation Scenario?

A company valuation scenario represents the financial worth of a company at different points in time, reflecting its past, current, and projected future values. Valuations derive from either:

• Real Value: Independent valuator assessments.
• Estimated Value: Internal calculations by management or founders.

Companies may maintain multiple valuation scenarios with adjustable participant visibility.

Why is company valuation important in Eldison?

1. Clear communication ensuring transparency among participants.
2. Motivation through future portfolio projections.
3. Streamlined ESOP management with clear asset pricing references.

Setting up valuations

Access valuations via Company > "Valuation scenarios" or the direct link. The platform supports manual entry and Excel import functionality.

Import features: The import capability handles bulk data with two columns (date and value). Existing periods update while new ones create; omitted periods remain unless manually deleted.

Export features: Users can export valuation data, modify specific values, and reimport updates.

Advanced settings:

• Primary Valuation Scenario designates default pricing.
• Public valuation scenario calculates participant portfolios (cannot be hidden).
• Hide from Participants controls visibility.

Examples

Simple setup — Company A: Phantom plan set up after a seed investment; communication is fully transparent, sharing all valuation details. Scenario: "Company Valuation & Forecast", combining past actuals with future forecasts.

Simple setup — Company B: Preparing for Series A, with no independent valuations yet; communication is simple, with one valuation forecast. Scenarios: "Fair Market Value" (pre-seed/seed data, primary, hidden from participants) and "Valuation Projection" (management's future forecast, shown to participants).

Complex setup — Company C: Post-Series A with a stock option plan; communication uses diverse valuations without exposing sensitive past data. Scenarios: "FMV Valuation" (internal initial value setting, hidden), "Conservative Scenario" (monthly reviewed forecast, visible) and "Ambitious Scenario" (optimistic monthly forecast, visible).

Recommendations

Share more valuation scenarios rather than fewer, and separate past investment rounds from management projections for clarity.