Early-stage positions start at cost, with limited reasons to change them.
AngelList’s policy holds early-stage investments at cost for their first year. During that period, the value stays unchanged unless a priced financing round or another significant event occurs.
Revaluation trigger events are the evidence for a new value.
AngelList updates valuations after specified revaluation trigger events, including new financing rounds, pending exits with determinable prices, material changes in company structure, and reports of impairment. That is why reported value usually changes in steps, rather than following every product milestone or headline.
- Priced financing
A new round with a price is a revaluation trigger. It is evidence for a revised mark, not a promise that the fund can sell its own securities at that price or at that time.
- Exit
A pending acquisition or IPO with a determinable price is also a revaluation trigger. The amount ultimately available to a fund still depends on its specific securities, preferences, timing, fees and other terms.
AngelList gathers evidence of changes every year.
Each year, AngelList and Belltower Fund Group contact portfolio companies for evidence of valuation changes. If direct information is unavailable, AngelList may assess public filings, hiring activity, media coverage and other indicators of ongoing operations. Reported impairment or a material business change can support a downward adjustment. In other words, AngelList recognizes more than a priced round or exit when deciding whether to revalue.
TVPI includes paper value. DPI requires cash distributions.
TVPI and DPI are standard fund-reporting terms. TVPI combines distributions already made with the reported residual value of positions still held. Because AngelList’s valuations change when a revaluation trigger event occurs, TVPI can move when a priced financing, determinable exit, impairment report or material company change updates a mark.
- TVPI
Total value to paid-in capital. It includes both cash already distributed and the current reported value of unrealized holdings.
- DPI
Distributions to paid-in capital. It moves only when cash is actually distributed to investors, so it normally lags TVPI in a venture fund.
Early in a fund’s life, that distinction matters: a higher TVPI can reflect a new reported mark, while DPI remains unchanged until the fund receives and distributes proceeds.
It is an estimate, not a price an investor can count on receiving.
AngelList says its valuations use GAAP standards under ASC 820 and does not independently verify all data provided by portfolio companies. Its valuation policy also does not account for liquidation preferences and other contractual provisions that could affect ultimate returns. A mark is not cash, a quoted market price, or an assurance of what an investment will realize.
Policy source.
- AngelList Help Center: How are valuations determined?AngelList's valuation policy for fund positions. This is the source for the policy summarized on this page.
For the terms, expenses and disclosures that apply to a particular fund, read that fund’s offering and subscription documents.
Those documents control over a general explanation of valuation and reporting mechanics.Risks & Disclosures
Marks are estimates. A reported value is an estimate under AngelList's valuation policy, not a price at which the fund can necessarily sell a position. It can change, including materially, before any realization.
No assurance of value or distributions. A valuation mark, TVPI, DPI or other reported metric is not a prediction of future value, liquidity or distributions. Venture investments are illiquid and may lose all of their value.
The administrator and offering documents control. AngelList administers Access Fund vehicles and applies its policies to their reporting. The applicable fund documents, financial statements and AngelList reporting control if they differ from this educational summary.
General information. This page provides general information only. It is not legal, tax, accounting or investment advice, and it does not take your circumstances into account. Consult your own advisers before making any investment decision.
No offer. This page does not contain the complete terms of any offering. Any offer is made only to eligible investors through the applicable official offering and subscription documents, which describe the terms, eligibility requirements, fees and risks, and control in the event of any inconsistency. Acceptance of any subscription is subject to those documents and the applicable review process.
Offering eligibility. Eligibility and verification requirements differ by offering. Access Fund Demo Day funds are intended to rely on Rule 506(c) of Regulation D, and participation is limited to verified accredited investors.
Risk. Venture investments are speculative and illiquid, are not readily transferable, and may result in the loss of the entire amount invested. They are suitable only for investors who can bear that risk for an extended period.
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