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Lesson 2 of 7
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Lesson 2 · 9 min · BriMindInvest Research Team

Where a Private Company's Valuation Actually Comes From

Mutual funds holding private stock must file what they think it is worth, share by share. Learn to read a Form N-PORT mark, and to judge a valuation by how far the funds carrying it disagree.

In this lesson you'll learn
The four sources of a private valuation, ranked by how checkable they are
How to turn a fund's shares-and-value disclosure into a per-share mark
Why the instrument beside the mark changes what it means
How to read cross-fund dispersion as an error bar

Four sources, ranked by whether you can check them

SourceWhat it isCan you verify it?
Funding roundThe price the newest preferred round was sold at, multiplied across all sharesNo. Announced by press release; terms are private.
409A valuationAn appraisal of the common stock, done for employee option pricingNo. Not published. Structurally conservative.
Marketplace quoteAn indicative price on a secondary platformPartly. You see a price, never the size or the terms.
Fund markA registered fund's own fair value for the position it holds, filed with the SECYes. Named filer, dated period, public accession.

Only the last row is checkable by someone outside the company, and that is the entire reason this course can exist. A fund that owns private stock has to tell its regulator what it thinks that stock is worth, quarter after quarter, under valuation procedures its board approved and its auditor looks at.

"Checkable" is not the same as "right". A fund mark is an estimate made under rules, by people with an incentive to be defensible rather than accurate. Lesson 3 measures the gap. Accept the estimate as a starting point, never as a price.

Reading one mark, line by line

The disclosure gives you a share count and a fair value. That is all you need:

fair value ÷ shares held = mark per share

Here is that arithmetic on the most heavily covered company in the current data set — picked by how many funds report it, not by name, so this example stays honest between builds:

DATABRICKS2026-Q3 · 51 marks from 12 funds across 8 advisers
FundInstrumentSharesFair valuePer share
ALGER FOCUS EQUITY FUND
0000940400-26-038531
DATABRICKS, INC552,095$132,894,787$240.71
Fidelity Blue Chip Growth Fund
0000035402-26-006129
DATABRICKS INC SER G PC PP437,958$105,215,030$240.24
Franklin Growth Opportunities Fund
0002071691-26-023300
Databricks, Inc., Series G338,280$83,202,034$245.96
ALGER SPECTRA FUND
0000940400-26-038536
DATABRICKS, INC325,466$78,342,921$240.71

Across all 51 marks the median lands at $240.71, with a low of $240.24 and a high of $262.31 — a spread of 9.2% of the median. These funds do not all hold the same instrument, which is flagged on the company page: a median across different series is a rougher number than a median across one.

Three things that change what a mark means

1. The instrument

Series F preferred, Series B preferred and common stock are three different securities in the same company. Preferred carries liquidation preference — paid first in a sale — so it is worth more per share than the common underneath it, sometimes far more. A mark tells you about the security named next to it and nothing else.

2. The period date

A fund reports as of a quarter end and files weeks later. A mark is always a look backwards. When a company raises, gets written down or announces a listing after that date, the mark has not heard about it yet. Every figure on our pages carries its period date for this reason.

3. How many independent funds agree

One fund's mark is one valuation committee's opinion. Three funds from two unrelated advisers is three opinions reached separately, and that is the published bar for coverage: a company is published only with >= 3 funds from >= 2 unrelated asset managers, a median of at least $0.01 a share, and marks spanning no more than 150% of the median. Coverage capped at 75. Everything that falls short is listed in belowBar with the reason..

Wrapper vehicles make fund counts lie if you are careless. Several feeder funds in one family holding the same position are not independent evidence — they are one adviser counted four times. That is why the bar counts unrelated advisers, not just funds.

Dispersion is the error bar

When several funds mark the same company, the width of their disagreement tells you how soft the inputs are. Two live extremes from the current data set:

Widest disagreement
SUPERHUMAN PLATFORM INC
62.5%
spread across 3 funds · median $25.60
Funds cannot agree what this is worth. Treat the median as the centre of a wide band, not a price.
Tightest agreement
OURA HEALTH OY
0.0%
spread across 4 funds · median $59.04
Independent filers land on effectively the same number. That is as close to a consensus private price as this data produces.

Both of those companies clear the same evidence bar. Clearing the bar means the number is sourced; the dispersion beside it is what tells you how much to trust it. Never quote the median without it.

What the scan found, and what it threw away

The figures above come from reading 400 fund filings over a 150-day window. That produced 6,756 individual marks naming 696 distinct private issuers — of which 20 cleared the bar and 676 did not.

The rejects are published with their reason on the marks page. Most fail for the dullest possible cause: one fund holds them and nobody else does. A company appearing in 696 names but not in the coverage table is not being hidden from you — it simply has one opinion behind it, and one opinion is not evidence.

Quick Knowledge Check
3 questions · test what you've just learned
1

A fund's filing lists 1,250,000 shares of a private company's Series F preferred with a fair value of $41,250,000. What is the fund's mark per share, and what does it apply to?

2

Why does a mark reported by a registered fund carry more weight than a private-marketplace quote?

3

Two funds both hold the same company and the same series, but one marks it 40% above the other. What is the most useful conclusion?

✓ Key takeaways from Lesson 2
A fund that holds private stock must report the position and its fair value to the SEC. Dividing value by shares gives you a per-share mark with a filer, a date and an accession number behind it.
A mark applies to the instrument named in the filing, not to the company. Mixed instruments across funds make the median less meaningful, so that condition is flagged rather than smoothed over.
More funds is better than a bigger fund: the point of the three-fund bar is that no single valuation committee sets the number.
Cross-fund dispersion is the error bar. Treat a tight spread as agreement and a wide one as a warning that the inputs are soft.
Read the marks yourself

Every company, every contributing fund, every accession number and period date — with the below-the-bar list published alongside.

Open the private marks →
← Lesson 1: What Pre-IPO Investing Actually Is (And What You Cannot Buy)Next: Lesson 3 — How Wrong Those Valuations Are — The Evidence →