QUICK, EASY AND ACCURATE DATA TRANSFORMATION IS THE KEY
In the case of seed and pre-seed companies, transforming data can be as easy as simply changing a few dates and amounts, as illustrated in the DonDodge.Typad.com example that follows on page 9 of this whitepaper. In the case of companies that have actually closed a round of venture capital, the documentation as of the latest round’s closing usually represents the most accurate distillation of the company’s ownership structure and value.
Sifting through 100’s of pages and tens of thousands of words to transform that transaction data into a venture dashboard is not a cost effective option. On the other hand, in many cases you will find that various iterations of closing documents summarize the ownership structure and cash payout rules in very different ways. This represents a great barrier to simply interpreting the financing and cash flow related documentation, much less building a dynamic analytic tool that responds on-demand to founder or investor desires to see the impact of changes in time.
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