What it is
The estimated price per share is a way to set the estimated (paper)value for a single share. The company admins can signal their estimate to the shareholders, and each shareholder can set their own estimates in the portfolio module*.
The estimated share price is accompanied by a date when it was last edited, and a note for added context.
Why it is here
Shareholders care about the value of their investments, whether the shareholder is part of the team, a VC fund or an angel investor.
As a service to your investors you (as an admin) can now provide your view to all your shareholders with a few clicks. Your shareholders will automatically be able to see the unrealized value of their holdings.
With easier access to the estimated value of current shareholdings we aim to:
Bring more attention to employees' ownership in the company.
Engage investors in ways to help the value of their portfolio grow.
Enable smoother secondary transactions (where applicable).
Support investor's tax reporting.
Help investors gauge the performance of their portfolio.
Aid investor's strategic decision making.
How it works
Admins can set their est price per share which is available to all shareholders from their Portfolio page. This is set manually from Cap table --> Securities: Hit ‘Edit’ next to a share class.
We generally recommend using the last actual pricing event (typically a share issuance), and add a note for added context. E.g.: "Share price for the Series A share issuance in May 2023".
Hit 'Save' and the data will be updated.
Investors can edit their estimated price per share from the Portfolio module*.
The consequences
All shareholders will get instant access to the estimated unrealized value ("paper value") of their holdings in the Portfolio module*.
The Estimated price per share is available on the Securities tab of the Cap table module (visible to all members of the investor portal).
If admins do NOT provide a estimated price per share, each shareholder will have to manually add their own estimates in order to display the full value of their holdings and their portfolio at large.
* At the time of writing the Portfolio module for investors does not include the features of estimating share price and portfolio value, but it's on its way.