- Complex Securities & Convertible Instruments
Fair value, for the instruments that don't fit a template.
Independent fair value analysis for SAFEs, warrants, convertible notes, options, and multi-class cap tables – from the same credentialed team behind your 409a.
- The basics
What is a complex securities valuation, and why it matters
A complex securities valuation establishes the fair value of instruments that have no observable market price – SAFEs, convertible notes, warrants, options and preferred shares carrying special rights. The value has to be modelled from the instrument’s terms, and it feeds both your ASC 820 fair value reporting and your 409a common-stock valuation.
Instruments like SAFEs, convertible notes, warrants, and preferred share classes with special rights (liquidation preferences, anti-dilution protection, participation rights) don’t have an obvious market price – their fair value has to be modeled. That fair value matters for financial reporting (ASC 820/ASC 480-10), for setting a defensible 409a common-stock value, and for giving investors and auditors confidence in your cap table.
Supports ASC 820 fair value reporting
Defensible valuations for complex instruments.
Strengthens your 409a
An accurate read on preferred/convertible terms improves your common-stock valuation too.
Built by credentialed analysts
The same CFA- and CVA-led rigor as our other services.
Handles multi-class cap tables
Experience with layered preference stacks and multiple financing rounds.
- Purpose
When you need this (triggers)
-
1
You've issued SAFEs, convertible notes, or warrants and need their fair value for reporting
-
2
Your cap table includes multiple preferred share classes with different rights
-
3
Your auditor has flagged complex instruments as needing an independent valuation
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4
You're preparing for a financing round, acquisition, or IPO with a layered cap table
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5
Your 409a valuation is complicated by outstanding convertible instruments
- How it works
From documents to signed report in days
01
- Step-1
Book a call
Pick a 45-minute slot for your mandatory management discussion.
02
- Step-2
Share your transaction documents
SAFEs, note purchase agreements, warrant agreements, and cap table detail, shared securely.
03
- Step-3
Our team builds your allocation model
CFA- and CVA-credentialed analysts model the relevant terms (conversion mechanics, preferences, option-like features).
04
- Step-4
Draft delivered
Review it, ask questions, request revisions.
05
- Step-5
Signed report
Partner-reviewed and final.
- Pricing
Custom pricing, based on your instruments
Pricing depends on the number and complexity of instruments involved and is quoted after your management discussion call.
- Most common
All Companies*
$899
- AICPA-compliant 409a report
- Draft in 2 business days*
- Tax audit support
- Partner review before final delivery
LLC Companies
$1,199
- AICPA-compliant 409a report
- Draft in 2 business days*
- Tax audit support
- Partner review before final delivery
Complex Instruments
Custom Pricing
- AICPA-compliant 409a report
- Draft in 2 business days*
- Tax audit support
- Partner review before final delivery
- FAQ
SAFEs, notes and warrants, answered
Do I need this in addition to a 409a valuation?
Often, yes – outstanding convertible instruments and complex share classes typically need to be modeled separately and then factored into your 409a common-stock valuation.
What instruments do you cover?
SAFEs, convertible notes, warrants, stock options, and preferred shares with special rights, among others.
How does a valuation cap on a SAFE or convertible note affect the valuation?
The cap sets a ceiling on the price at which the instrument converts, which makes it economically similar to an option and means it usually has to be valued with an option-pricing or scenario-based model rather than treated as simple debt. A low cap relative to your expected next round increases the instrument’s fair value.
Do SAFEs affect my 409a valuation?
Yes, usually downward on a per-share basis. Outstanding SAFEs represent equity that will convert later, so the allocation of value across share classes has to account for them – which is exactly the kind of judgment call a software-only model tends to handle badly.
Get your complex securities valued correctly.
Book a call to get your complex securities valued correctly.