Model Real Terms

If It’s in the Term Sheet, It’s in the App

Everything from Anti-Dilution to Warrants, without complex formulas

Valuative lets you create and analyze capital structures in real world terms, directly from the legal documents.

We’ve built in everything from the basics like Common, Preferred, and Debt to the fancy stuff like custom Carve Outs, Liquidation Preferences, Option vesting schedules and complex Convertible Debt.

So instead of confusing formulas like "=if(max(A1,0),A3,A1)", just click on “Participating Preferred Stock” and assign it a cap of 3x.

Read on, or jump to:

Modeling Without Limits

With Valuative, there are no artificial limits, as you can add an unlimited number of elements to your models, and model an unlimited number of scenarios.

As a result, it’s easy to handle situations from the simple to the complex. Bring on Series G!

  • Unlimited shareholders & investors
  • Unlimited capital structures
  • Unlimited rounds
  • Unlimited securities
  • Unlimited investments
  • Unlimited reports and charts

Fully Customizable Proceeds Waterfall

With just a few clicks, you can set the exact payout order for “senior claims” like liquidation preferences that get paid before common stock.

You can create groups of pari passu claims, and easily create custom payoff structures.

  • Supports liquidation preferences, carve outs, debt, and other senior claims
  • Set the “waterfall” of payoffs with a few clicks
  • Join claims into pari passu groups
  • Automatically pays pari passu claims pro-rata
  • Detailed reporting on senior claims’ priority and amount

Built-In Securities And Security Features

So it’s the gory details you want? See the full rundown of the security types and features in Valuative below.

Preferred Stock
  • Supports Convertible Preferred, Participating Preferred and Non-Convertible Preferred
  • Assign a share price, initial conversion ratio, and an optional label
  • Participating Preferred: set participation to be uncapped or capped per share (expressed in dollars or as a multiple of the share price)
  • Automatically makes optimal conversion decision upon exit
  • Add Anti-Dilution and unlimited Liquidation Preferences
  • Full support for Convertible Debt, as used in everything from angel to late-stage financing
  • Full support for Non-Convertible Debt, as often found in bank debt or venture debt
  • Set custom waterfall order of debt obligations as part of senior claims
  • Unlimited convertible and non-convertible debt securities in round, capital structure
  • Easily add warrants for common or preferred
  • Assign premium, strike price, expiration date
  • Warrant exercised automatically if in the money at exit
  • Proper handling of cash proceeds of exercise (even if cashless to holder)
  • Warrants for preferred automatically adjusted for triggered anti-dilution
  • Warrants for preferred automatically evaluate liquidation preference proceeds in exercise decision
  • Specify grant date, strike price, expiration date, and vesting schedule
  • Issue employee options at zero out-of-pocket cost
  • Options exercised automatically if vested & in-the-money
  • Properly handle cash proceeds of exercise at exit (even if cashless to holder)
  • Create custom, time-based vesting schedules with cliffs, acceleration, etc.
  • Easily add groups of similarly-situated option holders to avoid massive data entry
  • Optionally assume all options in-the-money at exit
Common Stock
  • Assign a share price and an optional label
  • Coming soon: vesting of restricted common stock
Preferred: Liquidation Preferences
  • Specify preference amount in dollars ($1.00) and/or multiple (e.g., 1x)
  • Set custom seniority order of liquidation preferences, pari passu groups
  • Unlimited, individually-ordered liquidation preferences for a single Preferred Stock
  • Add annual percentage increase, including Pay-in-Kind (PIK) compounding, if any
  • Liquidation Preference amount auto-adjusts if anti-dilution triggered
  • Liquidation Preference amount automatically inherited by securities that convert into Preferred Stock (i.e., Warrants, Convertible Debt)
Preferred: Anti-Dilution
  • Optional anti-dilution protection
  • Industry-standard formulas built-in: Full Ratchet or Weighted Average (Broad-Based, Middle-of-the-Road, Narrow-Based)
  • Shows you the detailed math behind anti-dilution adjustments
  • Original and anti-dilution-adjusted capital structure shown side-by-side
  • Anti-dilution protection automatically inherited by securities that convert into Preferred Stock (i.e., Warrants, Convertible Debt)
  • Liquidation Preference automatically applied to new shares issued from triggered Anti-Dilution
  • Anti-dilution not triggered by Warrants and Options
  • Design your own custom anti-dilution formula using formula editor
  • Calculate price of new round given desired pre-money, option pool expansion and anti-dilution effects using Round Price Tool
Convertible Debt
  • Convert into existing security or next round of preferred
  • Determines actual conversion price and shares issued using specified pre-money cap, discount and/or multiple on conversion
  • Optionally include conversion shares in next round’s pre-money valuation
  • Unlimited convertible securities in round, capital structure
  • Automatically inherits Anti-Dilution and Liquidation Preferences (if any) when converting into Preferred
Non-Convertible Debt
  • Unlimited non-convertible debt securities in round, capital structure
  • User-specified seniority order of each debt security in senior claims
  • Can easily pair with common stock for “senior preferred”-like structure
  • Fully customizable interest formulas and payment schedules
Convertible Debt: Advanced Features
  • Optional cap on pre-money valuation used to determine conversion price into next round preferred
  • Automatically combines multiple, discount + pre-money cap to calculate effective conversion price
  • Specify “fallback” security if no next round before maturity date (or repay in cash)
  • Specify alternate discount on conversion to “fallback” security, if applicable
  • Indicate whether conversion is optional or required upon next round of preferred
Convertible Debt: Warrant Coverage
  • Optional warrant coverage (%) on conversion
  • Auto-issue proper number of warrants upon conversion, based on actual conversion price
  • Warrants auto-exercised when in the money
  • Specify expiration period for warrants in days, weeks, months, quarters, or years
Debt: Customizable Interest Formulas
  • Automatically includes accrued but unpaid interest in exit/conversion calculations
  • Simple and compound interest
  • Set payment schedule or defer cash payments
  • Set compounding schedule or use simple interest
  • Automatically calculate effective annual rate
Options: Vesting
  • Design custom time-based vesting schedules with optional cliff, acceleration
  • Calculates vested shares automatically at exit date
  • Reports show vesting-adjusted and fully-diluted capital structure side-by-side at exit
  • Set 0-100% of option shares as subject to vesting
  • Optionally override vesting (i.e., assume fully vested) upon exit
Options: Vesting - Cliff
  • Support for time-based “cliff” during which options do not vest
  • Automatically determine if cliff applies at exit
  • Specify cliff period in days, weeks, months, years
  • Set 0-100% of vestable shares as subject to cliff
Options: Vesting - Acceleration
  • Optional acceleration of time-based vesting at exit
  • Choose “full acceleration” to fully vest unvested shares at exit
  • Choose “move ahead” to move vesting clock forward by a specified period of time
  • Set 0-100% of vestable shares as having acceleration feature