FundersClub does not display company-by-company markdowns because they could be considered a negative vote against specific portfolio companies, which we have no intention of making. We support all of our founders and their quests, no matter how difficult. The history of venture investing shows that the fate of startup companies can turn quickly, and it is not in our companies’ or investors’ interests to vote against that turnaround. At the same time, we must provide FundersClub investors with our best, current, conservative estimate of their returns. This is why we report subjective markdowns across your portfolio of investments instead of on a company-by-company basis, which is a practice standard in the VC industry.
Similarly, we do not report markups either on a company-by-company basis or on a portfolio basis in the absence of a third-party valuation event such as a new funding round, even if we subjectively believe the value of specific companies may have increased. Again, we do not believe it is in the interest of investors or companies to report subjective markups that are not validated by a third-party valuation event, and which may turn around quickly and may never be realized.
Note that investors with a small number of investments may be able to deduce specific company markdowns. We would like to remind investors that all information in My Investments is strictly confidential and can not be shared outside of FundersClub.