All Collections
FAQ
How is Notice Price determined?
How is Notice Price determined?

Notice Price is determined by a proprietary algorithm incorporating private and public market data, updated every minute.

Updated over a week ago

Intro

We strongly believe that the Notice Price represents the best available consensus price for private venture-backed companies.

What are the inputs to Notice Price?

As discussed in this blog post, we use five data inputs to determine Notice Price:

  1. Financing rounds: Financing round valuations

  2. Internal marks: 409A appraisals

  3. External marks: Quarterly '40 Act mutual fund marks

  4. Private market data: Verified executed trades and open bids and offers

  5. Comparables: Proprietary basket of private and public peer companies

How are the inputs incorporated?

All the above data inputs are contextually incorporated using a proprietary Notice Price algorithm that considers and weights company-specific data and private market data inputs based on the source and age of each data point.

What are your sources for private market data?

We source trades, bids and offers from our global collective of market participants, which include 90+ independent brokers and 2,500+ individual investors.

How is price consensus determined?

Every minute, the Notice Price algorithm looks for a price consensus in the market using company-specific and private market data inputs. This consensus is measured on a continuum of Low to High, as indicated by Notice Price Drivers icon shown next to the Notice Price.

What happens when a high level of price consensus exists?

If the Notice Price algorithm determines that a high level of price consensus exists among the company-specific and private market data inputs, Notice strongly favors the current market consensus when setting the current Notice Price for the company's stock.

What happens when a low level of price consensus exists?

If the Notice Price algorithm determines that a low level of price consensus exists among the company-specific and private market data inputs, Notice strongly favors comparables when setting the current Notice Price for the company's stock.

What happens when new private market data is added to the Notice database?

Notice regularly receives new private market data from our global collective of market participants. When this data is added to our database, the Notice Price algorithm automatically incorporates it to set the current Notice Price and recalculates the historical Notice Price for the relevant company. This way, Notice Price always reflects the totality of private market data that we have.

Whenever Notice Price is updated, anything that relies on Notice Price, such as Notice Rankings and the Notice 50 Index, will also be updated.

How accurate is Notice Price?

We want Notice Price to be good at predicting the next trade price, and we consider this to be the best way to measure Notice Price accuracy. If we look across all trades in our database, 80% of them fall within a range of +20% and -20% of the Notice Price when those trades occurred.

Is the Notice Price algorithm ever updated?

Building the best private company pricing in the private markets requires iteration, and each iteration of the Notice Price algorithm increases the accuracy of Notice Price. The latest iteration of Notice Price algorithm is v1.3.

How can you access real-time Notice Price?

Basic members have access to 90 day delayed Notice Price. There are two ways to upgrade your membership to access real-time Notice Price:

  1. Purchase Notice Essentials to get access to real-time Notice Price for 1,100+ companies. 1 month and 12 month terms available.

  2. Purchase Notice Pro to get access to real-time price for 1,100+ companies plus all market activity data for 6,000+ companies, and full access to all investor tools.

Please contact us to learn more.

Did this answer your question?