Einar Vollset

And actually, like, it's funny, because in 21, when we had more markups and stuff, I remember doing it this way. And I was just like, okay, well, you know, we'll mark out why not, we're not going to handicap ourselves. People are asking, like, there's really not necessarily quite of a correlation between the success of the company and the valuation markup.

And actually, like, it's funny, because in 21, when we had more markups and stuff, I remember doing it this way. And I was just like, okay, well, you know, we'll mark out why not, we're not going to handicap ourselves. People are asking, like, there's really not necessarily quite of a correlation between the success of the company and the valuation markup.

Because in 21, in particular, and like, this is true in all bubbly things. you would have people who raised because they were doing really well, and then people who raised because they were doing really badly, and they were running out of money, and they were going to go under unless they raised money.

Because in 21, in particular, and like, this is true in all bubbly things. you would have people who raised because they were doing really well, and then people who raised because they were doing really badly, and they were running out of money, and they were going to go under unless they raised money.

And so they were able to do so, and then they got marked up above what even some of the best performing companies that we had. And so what we decided to do was basically say like, look, we're going to give you a market price.

And so they were able to do so, and then they got marked up above what even some of the best performing companies that we had. And so what we decided to do was basically say like, look, we're going to give you a market price.

And so we have a couple of different variants on this, but sort of our sort of base case valuation, which is most of the numbers we share out, it's basically some sort of a revenue multiple based on growth mostly. And it's somewhere between 2x and somewhere between 7x.

And so we have a couple of different variants on this, but sort of our sort of base case valuation, which is most of the numbers we share out, it's basically some sort of a revenue multiple based on growth mostly. And it's somewhere between 2x and somewhere between 7x.

And really what that valuation is, is different to even like a typical VC markup in the sense that, look, if you raise a Series A at a billion dollars, that does not mean you can sell your company for a billion dollars. That's just not happening. You know, obviously, you know, like if you raise it 200 times ARR, you're not selling it 200 times ARR. It's not possible.

And really what that valuation is, is different to even like a typical VC markup in the sense that, look, if you raise a Series A at a billion dollars, that does not mean you can sell your company for a billion dollars. That's just not happening. You know, obviously, you know, like if you raise it 200 times ARR, you're not selling it 200 times ARR. It's not possible.

Our base case valuation, though, is more like what is the market price currently? What is the clearing price? What is the liquidation price of the portfolio at the moment? And that's what we go to market with, which is... Kind of a handicap. I've got to be honest with you. Oh, big time. Much more conservative. Much more conservative.

Our base case valuation, though, is more like what is the market price currently? What is the clearing price? What is the liquidation price of the portfolio at the moment? And that's what we go to market with, which is... Kind of a handicap. I've got to be honest with you. Oh, big time. Much more conservative. Much more conservative.

And we provide like the optimistic case, which goes out, I think, to up to 11x. And we have one which includes the markups whenever they happen and a little bit more. But most of the time we're referring to the base case, so liquidation type valuation. And the reason for that is mostly that I want to be as conservative as possible.

And we provide like the optimistic case, which goes out, I think, to up to 11x. And we have one which includes the markups whenever they happen and a little bit more. But most of the time we're referring to the base case, so liquidation type valuation. And the reason for that is mostly that I want to be as conservative as possible.

You know, like I basically want to be able to argue because we're already doing something different. Like, you know, like we're not your typical what everyone else is expecting. And like, oh, yeah, this is how you get, you know, through an audit at Carta because the markups is from Andreessen and blah, blah, blah. So we had to be a little bit more conservative. It can be a challenge.

You know, like I basically want to be able to argue because we're already doing something different. Like, you know, like we're not your typical what everyone else is expecting. And like, oh, yeah, this is how you get, you know, through an audit at Carta because the markups is from Andreessen and blah, blah, blah. So we had to be a little bit more conservative. It can be a challenge.

Although I will say, and although it's not apples to apples, I was pretty stoked when Cardio, which is our fund management platform, they came out in the spring with like a performance metrics of 1800 funds, which actually includes us. And, you know, we were in the top five to six to 16% based on the venture metrics there. So even in our using our most conservative metric evaluation.

Although I will say, and although it's not apples to apples, I was pretty stoked when Cardio, which is our fund management platform, they came out in the spring with like a performance metrics of 1800 funds, which actually includes us. And, you know, we were in the top five to six to 16% based on the venture metrics there. So even in our using our most conservative metric evaluation.

So that felt good, but it's still a challenge, right? Because like it's new, right? People would rather have, in some cases, people are like, look, I believe that this company is worth a billion dollars because Andreessen says so, even though they're only doing 500,000 ARR, more than I believe that this company is worth 5x ARR.

So that felt good, but it's still a challenge, right? Because like it's new, right? People would rather have, in some cases, people are like, look, I believe that this company is worth a billion dollars because Andreessen says so, even though they're only doing 500,000 ARR, more than I believe that this company is worth 5x ARR.