7min

Setting up Stock valuations

In the Stock valuations tab, you can create stock options for your employees through option grants, strike prices, and fundraising events in your ChartHop organization.

You can use Stock valuations to manage and configure your stock options for your organization's employees, determine the strike price for option grants, and establish amounts to be allocated for fundraising events.

Creating a Grant Price Stock valuation
Creating a Grant Price Stock valuation

To create a stock valuation:

  1. From the left sidebar, select the gear icon and select Org Settings.
  2. Select the Stock valuations tab.
  3. In the Date field, enter the date when the stock valuation will be established.
  4. In the Type field, use the dropdown to select a stock value type:
    •  Grant Price: This should be the price used to determine employee compensation value -- the company's "best value" (as described by Fred Wilson in this classic blog post). When determining the present value of a stock option grant, grant price will be calculated against strike price.
    •  Common FMV: Fair Market Valuation performed, usually by an outside firm, to value the company's common stock for safe harbor under IRS 409A. These prices are used as the strike price for stock option grants
    • Preferred Fundraise: This is the price most recently paid by investors for preferred stock, entered when the company raises outside investment.
  5. In the Price/Share field, enter the value of your price per share.
  6. In the Total shares fully diluted field, enter the value of your organizations total number of shares.
  7. Select + Add valuation to create the stock valuation.





Updated 30 Jun 2022
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