How to add estimated value
Full admin users on Carta LLC can enable estimated values for interest types.
This feature provides an approximation of the financial value of a specific interest in an LLC, based on the company's overall financial worth.
These estimates are calculated using the entity's per unit value recorded in the Valuation tab.
Estimated value can be enabled when creating or editing an interest type. Click on a topic below to learn more.
How do I add estimated value while creating a new interest type?
Complete steps 1-7 of the Creating Interest Types workflow.
After completing the Acceptance agreements page, click into the dropdown to the right of Outstanding Value to select who will be able to view the estimates.
How do I add estimated value while editing an interest type?
Navigate to Cap table > Interests and interest types.
Click the applicable interest type in the left sidebar.
Click View interest type details.
Scroll down and click Edit to the right of Estimated value.
On the Estimated value page, select who will be able to view the estimates by clicking into the dropdown menus in the Visible to column. Click Next.
Review changes and click Confirm to save.
How do I view the estimated value of an interest?
Navigate to Cap table > Interests and interest types.
Click the applicable interest’s row to view details.
The Estimated value can be viewed within the Interest Summary tab.
What are the different types of estimated values?
If you are using a per unit valuation to calculate the estimated value of units, there are 6 different types of estimated values available:
Outstanding
Unvested
Vested
Multiple of Invested Capital (MOIC)
Threshold gain/loss
Unvested threshold gain
Vested threshold gain
.
If you are using the Waterfall modeling to calculate the estimated value of units, there will be 3 different types of estimated values available:
Multiple of Invested Capital (MOIC
Vested
Accelerated vesting
The platform will use the distribution rules from the Waterfall Model to calculate the estimated value of each interest type based on the company's overall valuation that must be added on the Valuations and 409A page.
Click the estimated value type to learn more: