Pricing Your Shares
One of the most challenging aspects of selling private stock is determining a fair price.
How Do I Decide What Price Is Fair for My Stock?
It’s up to you to decide how much to sell your shares for. Mirai Capital provides some information that might help you in your decision, which you can view when you create an account and identify the types of shares you hold.
Mirai Capital offers this information solely for informational purposes. It’s up to you to make your own decision about the price to sell your stock. All the information and data points on the platform are approximate; they haven’t been vetted, confirmed, verified, or endorsed by Mirai Capital. You should also keep in mind that the market for private stock of one company can vary significantly from one day to the next and one transaction to the next.
How Do Buyers Come Up with Their Price?
Buyers may use various tools, methods, and data sources to estimate the fair market value of a stock. They may look at the last round value of the stock, as well as data points on historical transactions for the stock, if these are available. If they are an existing shareholder of the company, they may have information about the actual performance of the company, such as financial statements. They could also look at overall market levels and trends, industry data or research, and information on other comparable companies.
What If They Suggest a Price That I Think Is Too Low?
If a buyer’s price is below your target, you can counter through the platform. In the private markets, there will often be a large “spread” between your asking price and what a buyer indicates, which can lead to several counters before any transaction is agreed.
Valuation Methods
When you’re assessing a pre-IPO investment or trying to price your shares, one of the most important factors can be the company’s valuation. Private companies generally do not disclose their valuations publicly and offer limited financial information. However, investors can use several methods to estimate what a company and its shares are worth, including:
- Comparison to similar publicly-traded companies
- The company’s 409A valuation
- The implied valuation from the company’s last capital raise
- Transaction data on investing platforms
What If the Shares I Want to Sell Are Not Listed on Mirai Capital?
Our marketplace boasts over 200 tradable companies. These companies typically have a last-round valuation of at least USD $500 million. Most have a last-round value exceeding USD $1 billion.
During the account creation process, you will be able to indicate which companies you’re interested in selling. If the stock you own is not listed, you’ll be able to input its name, and our team will review the request.
What If There Are No Prior Transactions for the Shares I Want to Sell?
Just because there are no prior transactions for the company in which you hold shares, it doesn’t mean there will be no buyers for your stock — it just means that Mirai Capital hasn’t facilitated a transaction in that company yet. It’s possible that potential buyers have placed your company on their watchlist, and are waiting for sellers to place a sell indication.
In this case, you can create a sell indication at a price that works for you. Mirai Capital will pair it with any eligible buyers’ interest.