Derivatas was founded in 2011 by experienced valuation professionals who decided there must be a better way to generate valuations than the time consuming, expensive process that was prevalent at the time. Derivatas developed the first sophisticated software platform for venture valuations, saving hours of tedious work, while at the same time eliminating errors and guaranteeing 100% accuracy in the calculations. The platform and the reports generated save time and money not only in the valuation process, but also in the audit process which follows. Since our inception, we have grown to provide countless mark-to-market valuations for venture funds worldwide and 409A valuations for early stage companies.
We are specialists in valuations for venture capital funds and the companies they finance – it’s all we are about. Our focus makes us the best at what we do.
Since 2004, the IRS has required that stock options be granted at "Fair Market Value” under Internal Revenue Code 409A, and GAAP accounting rules require that the valuation be allocated to each class of security. The process is complex and requires specialized expertise. Even the most experienced CFO’s are seldom trained in this process, so utilizing a specialist firm such as Derivatas is almost a requirement. Penalties from the IRS can be severe for the company and also the recipient of the options, and a poor valuation paper trail can derail a fund raise or liquidity event. A valuation from a reputable third-party firm such as Derivatas gives you “safe harbor” with auditors, the IRS and the SEC. Our belief is that managements of early stage development companies have better things to do than spend time, energy and money on compliance issues such valuations. Derivatas is dedicated to making your life easier at every step – and more economical as well.
Venture capital funds historically have conducted annual and quarterly valuations of their portfolios internally. In recent years, auditors have been increasing pressure on funds to hire third-party valuation firms to perform the valuations. This process is ongoing and evolving, as more and more venture funds move toward independent valuations. In past years, the cost of valuations has discouraged using third party firms for mark-to-market valuations. Derivatas is breaking new ground in offering affordable valuations for venture funds. Few valuation firms have the experience, insights and skills to work with venture funds on their valuation process. Portfolio valuations require an ability to work with investment professionals and auditors in addition to financial teams. Derivatas has the experience and sensitivity to provide exceptional service at all levels in this process. Our valuation reports for VC clients have been called the “Best In Class” by BIG 4 auditors.
Derivatas was initially referred to us by a BIG 4, and they came highly regarded. The Derivatas professionals know exactly how to work with our BIG 4 auditors along with our finance team to foster a collaborative and trusting environment. Their deep expertise and strong relationship skill have carried us through several audit cycles already. Can’t say enough how much we love working with them!Cinthia Sheu VP, Finance, Vivo Capital
Derivatas provided a 409a valuation for a client requiring a significant change versus a prior valuation by another firm. They helped us understand why the new valuation methodology would be necessary for the company to survive a future audit and avoid a potentially damaging outcome. Working with Derivatas was both enjoyable and enlightening, and I will be using them with all my clients in the future.Scot Mollot Interim CFO in Silicon Valley
The Derivatas team has always provided an easy to follow analysis in a clear and detailed overview format. They provide a knowledgeable interface with auditors and a quick turnaround on reports. They are reliable and have saved us a lot of time and headaches.Daniel Barakat VP, Finance, e.ventures
We had a great experience working with Derivatas. Your team was so helpful, and you saved us a lot of time and money. And our auditors were very complimentary of the quality of your report.Dale Fox CEO, Tribogenics, Inc.
The Derivatas leadership has performed some of the most difficult valuations, reviewed thousands of third-party valuations, and are well-versed with the auditing processes from the top firms in the country. We draw from all these experiences to give our customers unparalleled service.
Our numbers speak for themselves