37

A few years ago I and a few friends created a company based on the web. During the raising funds period, we got a plan for $500,000 for 20% and we got investors. The last news about investors that I have refers to 2017: the investor got 15% for 180k (about 0.50 per share). Since that time I was out of the game and I had no news about the company. I now want to sell my shares so I asked them to sell my shares and their answer was:

We have you marked down as someone wanting to sell their shares.

What does it mean?

In the last 2 years, profit and loss balance is negative (-140K) but they expect some changes this year.

What do I need to calculate the share value?

Thanks for any suggestion.

Chris W. Rea
  • 31,999
  • 17
  • 103
  • 191
Uncoke
  • 489
  • 4
  • 9

1 Answers1

65

Private companies don't have liquid secondary markets. There are no identified buyers of your shares. The next time there's a fund raising round at the company they will include some or all of your shares in the transaction at whatever valuation is being used for the transaction.

What you need to calculate the value of the shares is a buyer for your shares.

quid
  • 49,074
  • 11
  • 101
  • 161