FVC2341. Valuation of private company SAFEs, convertible debt, and embedded derivatives

This presentation will focus on the best practices as it relates to the methodologies used in the valuation of SAFE agreements, debt which is convertible into next round of equity financing, and related embedded derivatives for financial reporting purposes for both GAAP and IFRS. Specifically, we will outline the major differences in the valuation approaches and discuss how the choice of the approach will impact the fair value conclusion. Calibration to transaction prices, including scenarios where reasonable assumptions result in values that differ from the transaction prices, will also be covered in this presentation.

Learning Objectives:

• Analyze common terms of SAFEs and convertible debt
• Differentiate commonly valued embedded derivatives
• Identify the main differences between IFRS and GAAP requirements related to SAFEs, convertible debt, and embedded derivatives
• Select methodologies used to value SAFEs, convertible debt, and embedded derivatives