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Accounting & Taxes

What is the best approach to valuing and warehousing a $500K micro-services investment for a venture fund's portfolio companies?

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May 03, 2023
I would appreciate some guidance on warehousing from you guys: I invested $500K over two years in a collection of micro-services designed to be a foundational shared resource for my portfolio companies. This is one crucial vertical in my strategy for differentiating the value proposition of my venture fund. I am contemplating two options: (1) treat them as assets contributed at cost based on invoices from developers or (2) warehouse the entire company that paid to create them which I own raising the question of how to value it as it was only ever used as a legal vehicle to create these assets and has no revenues.
1 answer
Accepted Answer
May 03, 2023
You will not be able to warehouse the assets. If you’re going to warehouse, the assets must be startup equity.

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