Codon Valuation

Gives an indicative range for the fair market value per share of a US private company's common stock, as a planning estimate before a formal 409A valuation (for example, to anticipate an option strike price). Uses an option pricing model backsolve when there is a priced round in the last 12 months; otherwise a rolled-forward round, a sector revenue multiple, or an asset-based approach, depending on the inputs. Applies Finnerty and Chaffe marketability discounts. Inputs are numbers from the cap table and financials; no company or personal names are needed. Limitations: treats all preferred as non-participating and pari passu with 1:1 conversion, and does not model SAFEs or convertible notes. The result is not a 409A valuation.

{
  "type": "object",
  "properties": {
    "sector": {
      "type": "string",
      "enum": [
        "software_saas",
        "fintech",
        "ai_ml",
        "marketplace_ecommerce",
        "consumer",
        "hardware_deeptech",
        "healthtech_digital_health",
        "medtech_devices",
        "biotech_therapeutics",
        "diagnostics",
        "climate_energy",
        "other"
      ],
      "description": "Company sector. Sets the default volatility and revenue multiple. Use 'other' if unsure."
    },
    "common_shares_outstanding": {
      "type": "number",
      "description": "Number of common shares issued and outstanding (excluding options and preferred)."
    },
    "preferred_series": {
      "type": "array",
      "description": "Each priced preferred share round. Leave empty or omit if the company has never raised a priced round.",
      "items": {
        "type": "object",
        "additionalProperties": false,
        "required": [
          "shares",
          "original_issue_price",
          "months_since_issue"
        ],
        "properties": {
          "name": {
            "type": "string",
            "description": "Series name, for example 'Seed' or 'Series A'."
          },
          "shares": {
            "type": "number",
            "description": "Shares issued in this series."
          },
          "original_issue_price": {
            "type": "number",
            "description": "Price paid per share, in US dollars."
          },
          "months_since_issue": {
            "type": "number",
            "description": "Months since the round closed."
          },
          "liquidation_preference_multiple": {
            "type": "number",
            "description": "Liquidation preference multiple. Defaults to 1."
          }
        }
      }
    },
    "options_outstanding": {
      "type": "number",
      "description": "Number of share options granted and outstanding."
    },
    "options_weighted_average_strike": {
      "type": "number",
      "description": "Weighted average exercise price of outstanding options, in US dollars."
    },
    "years_to_exit": {
      "type": "number",
      "description": "Expected years until a sale or IPO. Defaults to 3."
    },
    "revenue_last_12_months": {
      "type": "number",
      "description": "Revenue for the last 12 months, in US dollars."
    },
    "revenue_growth_pct": {
      "type": "number",
      "description": "Year-over-year revenue growth, as a percentage (for example 40 for 40%)."
    },
    "gross_margin_pct": {
      "type": "number",
      "description": "Gross margin, as a percentage."
    },
    "cash": {
      "type": "number",
      "description": "Cash on hand, in US dollars."
    },
    "debt": {
      "type": "number",
      "description": "Interest-bearing debt, in US dollars."
    },
    "total_capital_invested": {
      "type": "number",
      "description": "Total equity capital invested to date, in US dollars. Used when there is no priced round and no revenue."
    },
    "performance_since_last_round": {
      "type": "string",
      "enum": [
        "ahead",
        "on_plan",
        "behind"
      ],
      "description": "How the company has performed against plan since its last priced round. Used when that round is more than 12 months old."
    },
    "has_unconverted_safes_or_notes": {
      "type": "boolean",
      "description": "True if the company has SAFEs or convertible notes that have not yet converted."
    },
    "has_participating_preferred": {
      "type": "boolean",
      "description": "True if any preferred series is participating."
    },
    "volatility_pct": {
      "type": "number",
      "description": "Optional override for equity volatility, as a percentage."
    },
    "risk_free_rate_pct": {
      "type": "number",
      "description": "Optional current government bond yield matching years_to_exit, as a percentage."
    }
  },
  "required": [
    "common_shares_outstanding"
  ],
  "additionalProperties": false
}

Gives an indicative range for the market value per ordinary share of a UK private company, as a planning estimate before agreeing an EMI valuation with HMRC (for example, to anticipate an EMI option exercise price). Uses the same methods as the 409A estimate, in pounds sterling: an option pricing model backsolve for a priced round in the last 12 months, otherwise a rolled-forward round, a sector revenue multiple, or an asset-based approach. Inputs are numbers from the shareholder register and accounts; no company or personal names are needed. Limitations: treats all preference shares as non-participating and pari passu, and does not model convertible instruments. The result is not an HMRC-agreed valuation.

{
  "type": "object",
  "properties": {
    "sector": {
      "type": "string",
      "enum": [
        "software_saas",
        "fintech",
        "ai_ml",
        "marketplace_ecommerce",
        "consumer",
        "hardware_deeptech",
        "healthtech_digital_health",
        "medtech_devices",
        "biotech_therapeutics",
        "diagnostics",
        "climate_energy",
        "other"
      ],
      "description": "Company sector. Sets the default volatility and revenue multiple. Use 'other' if unsure."
    },
    "common_shares_outstanding": {
      "type": "number",
      "description": "Number of ordinary shares issued and outstanding (excluding options and preferred)."
    },
    "preferred_series": {
      "type": "array",
      "description": "Each priced preferred share round. Leave empty or omit if the company has never raised a priced round.",
      "items": {
        "type": "object",
        "additionalProperties": false,
        "required": [
          "shares",
          "original_issue_price",
          "months_since_issue"
        ],
        "properties": {
          "name": {
            "type": "string",
            "description": "Series name, for example 'Seed' or 'Series A'."
          },
          "shares": {
            "type": "number",
            "description": "Shares issued in this series."
          },
          "original_issue_price": {
            "type": "number",
            "description": "Price paid per share, in pounds sterling."
          },
          "months_since_issue": {
            "type": "number",
            "description": "Months since the round closed."
          },
          "liquidation_preference_multiple": {
            "type": "number",
            "description": "Liquidation preference multiple. Defaults to 1."
          }
        }
      }
    },
    "options_outstanding": {
      "type": "number",
      "description": "Number of share options granted and outstanding."
    },
    "options_weighted_average_strike": {
      "type": "number",
      "description": "Weighted average exercise price of outstanding options, in pounds sterling."
    },
    "years_to_exit": {
      "type": "number",
      "description": "Expected years until a sale or IPO. Defaults to 3."
    },
    "revenue_last_12_months": {
      "type": "number",
      "description": "Revenue for the last 12 months, in pounds sterling."
    },
    "revenue_growth_pct": {
      "type": "number",
      "description": "Year-over-year revenue growth, as a percentage (for example 40 for 40%)."
    },
    "gross_margin_pct": {
      "type": "number",
      "description": "Gross margin, as a percentage."
    },
    "cash": {
      "type": "number",
      "description": "Cash on hand, in pounds sterling."
    },
    "debt": {
      "type": "number",
      "description": "Interest-bearing debt, in pounds sterling."
    },
    "total_capital_invested": {
      "type": "number",
      "description": "Total equity capital invested to date, in pounds sterling. Used when there is no priced round and no revenue."
    },
    "performance_since_last_round": {
      "type": "string",
      "enum": [
        "ahead",
        "on_plan",
        "behind"
      ],
      "description": "How the company has performed against plan since its last priced round. Used when that round is more than 12 months old."
    },
    "has_unconverted_safes_or_notes": {
      "type": "boolean",
      "description": "True if the company has SAFEs or convertible notes that have not yet converted."
    },
    "has_participating_preferred": {
      "type": "boolean",
      "description": "True if any preferred series is participating."
    },
    "volatility_pct": {
      "type": "number",
      "description": "Optional override for equity volatility, as a percentage."
    },
    "risk_free_rate_pct": {
      "type": "number",
      "description": "Optional current government bond yield matching years_to_exit, as a percentage."
    }
  },
  "required": [
    "common_shares_outstanding"
  ],
  "additionalProperties": false
}

Lists the documents and typical steps for a formal US 409A valuation or UK EMI valuation, with contact details for Codon Valuation Advisors, the firm that provides this connector. Use when the user asks what a formal valuation requires or how to obtain one.

{
  "type": "object",
  "properties": {
    "valuation_type": {
      "type": "string",
      "enum": [
        "us_409a",
        "uk_emi",
        "both"
      ],
      "description": "Which formal valuation the user is asking about. Use 'both' for a company with US and UK option holders."
    }
  },
  "required": [
    "valuation_type"
  ],
  "additionalProperties": false
}