Instructions:

Complete all tasks below and submit your answers in a single answer document. This answer document may reference additional separate attachments (such as spreadsheets, charts, pdfs, etc) which explain your thinking
Be as detailed as possible
Seek out experts and other resources. You should leverage your network
Be creative, be accurate, do your best work

Once finished you should email your answer document and all additional files you've created to [email protected] with the subject: "CoS Application 1Bravo - YOUR NAME" (Your name should be your name ie John or Jane Doe)

#1) Portfolio FMV Process

Background: You need to create a process to stay in touch with our startups, create accurate Fair Market Valuations for each company and keep a historical record of these valuations along with key data and notes collected along the way.

Imagine we have a portfolio of 40 companies. We invested in these companies from 2014 through 2018 at seed or preseed stage. The fund has a 12 year term so we will manage these assets until 2026 and need to maintain an accurate historical record of performance. The companies are located in 6 different states across the US.

Some of these startups have died; some are in zombie stage stagnating and others are flourishing and a couple have become unicorns. Regardless of status (unless they’ve shut down) we need to check in with these companies and collect key information including: any notes or equity funding in the last 6 month period; annual revenue, cash on hand, monthly burn, headcount. In addition to this info, you are tasked with picking three other pieces of information that we should collect every period to understand the health of the companies.

For each company you may need to track multiple points of contact (ie founders, CFO, GC etc). As people leave or change roles you’ll need to keep it up to date

Some of the companies will routinely provide us with zoom briefings, powerpoints and decks and some will send monthly, quarterly or annual updates by email or other means. Sometimes a partner or employee in our fund will learn something key about a company and send it to you.

Within 30 days of each 6 month period ending, you need to have prepared a Fair Market Valuation for each of our companies. You can choose one or multiple acceptable methods for conducting the FMV and you can use a different approach for different companies.

As far as resources go, you can coordinate with our director of operations to get support from one or more of our financial analysts and you may use any software or service provided the annual cost doesn’t exceed $10,000.

Task:

Describe (and feel free to use charts or spreadsheets) how you would organize and manage this process. Explain the tools and methodology you’d use. Make whatever assumptions are needed to get this task done and present to the managing partners.