Investors

How investors track private-company holdings

Most investors track private holdings by reconstructing them: the subscription agreement gives the initial position, update emails and new financing documents adjust it, and a spreadsheet holds the result. The method works until the company does something the investor did not model — a pool increase, a conversion, a transfer — at which point the recorded position is quietly wrong.

Prepared by Perseids · Published · Updated

What to track per holding

  • Instrument and class, not just an amount invested.
  • Share count and the fully diluted total it is measured against.
  • Terms: liquidation preference, participation, anti-dilution, pro rata rights.
  • Convertible instruments still outstanding and their conversion terms.
  • Date of the last confirmed position, and its source.

Where the error comes from

  • Option pool increase

    Typical effect on an unconnected record
    Investor percentage overstated
  • SAFE or note conversion

    Typical effect on an unconnected record
    Denominator understated
  • Secondary transfer between others

    Typical effect on an unconnected record
    Register wrong, percentage still correct
  • New class with different terms

    Typical effect on an unconnected record
    Preference stack modelled incorrectly

Connected positions and provenance

The alternative is to read the position from the company's own ledger, with the company controlling what is shared. Perseids labels every figure as connected, investor-supplied or engine-derived, so a portfolio view shows not only the number but how much confidence it deserves.

Prepared by Perseids for general information. It is not legal, tax or investment advice — confirm your specific situation with your advisers.

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