Holding Value on the investor portal has a limited meaning and cannot be relied on except for general information and portfolio analysis
Valuation of private investments into early-stage technology companies is a complicated topic because there is no liquid market which would provide price discovery information. The term holding value is used throughout the investor portal to describe the unrealised or residual value of holdings that have not yet been disposed of.
Investor Portal: Holding Value
The Icehouse Ventures investor portal presents a "Holding Value" for unrealised investments based on the following logic:
1. Most recent priced round raised by the company from external investors (where that round is in a substantially similar asset class such as preference shares or common stock).
2. Re-valuation events based on secondary transactions (between two parties who are not the original issuer) where there is participation of an external third-party investor.
3. Documented evidence that the company has ceased trading.
Updates to the share price of an instrument / share class happen when the new information is loaded into the investor portal. In the case of investments or secondaries, the new event may only be loaded when the entire transaction is legally completed and shares issues. This may mean there is a delay between press announcements or coverage of a new transaction and the resulting update in the holding value.
International Private Equity and Venture Capital: Valuation
Some Icehouse Ventures funds follow the IPEV International Private Equity and Venture Capital Valuation Guidelines (which is similar to the above 'priced rounds plus trading notices' methodology with the notable addition of manager assessments of company performance). For clarity, the IPEV valuations are not included in the investor portal holding value. These valuation may be referred to in the Limited Partnership income tax statement but are still not intended to be relied on as a 'ready value' or implied realisable value on immediate disposal.
Foreign Investment Funds: Cost Method
Some investors elect to carry their overseas domiciled startups at cost price for the purposes of the the Forgien Investment Funds (FIF) taxation of overseas investments. The Icehouse Ventures investor portal provides exports that are valuation method agnostic and intended to allow for preparation of tax reporting on whatever basis is selected by the investor. Information to disclose your investments is available to support any of the the Fair Dividend Rate, Comparative Value Method or Cost Method. Icehouse Ventures does not provide tax advice and investors with FIF disclosure requirements should consult an accountant or qualified tax professional.
Disclaimer: Best Efforts
Holding value information in the investor portal is provided on a best efforts basis and should not be relied on as an asset valuation by any party for tax, insurance or other purposes. Any references in the investor portal to the terms Holding Value, Total Value, Fair Value or Residual Value are limited to the meaning set out in the Global Investment Performance Standards (GIPS) including the 2006 Interpretive Guidance for Private Equity and cannot be relied upon for any reason other than general informational analysis of an investors own portfolio.