Sector Profiles

Define macro views on the round sizes, valuations and performance

By default a Tactyc Default profile is already created for you. This is based on proprietary research and publicly available datasets from Carta, Crunchbase and NVCA and is updated every quarter. You can override the assumptions set directly.

What goes in a sector profile?

Each sector profile is made up of multiple stages (or rounds). These stages define the valuations, round sizes and likelihood of graduations, exits etc. All of these values can be edited and overwritten.

• Round: The name of the stage

• Round Size: The size of the round

• Valuation: Pre or Post Money Valuation

• Valuation ($): Valuation in amount

• ESOP(%): Minimum amount of total employee stock options as a percentage of fully diluted shares outstanding at the end of this round.

• Graduation Rate: Likelihood of graduation from this stage to the next stage

• Exit Rate: Likelihood of exiting at this stage

• Failure Rate: Calculated automatically as 100% - graduation rate - exit rate

• Exit Valuation: Average value of a company that is exiting at this stage

• Months to Graduate: How many months will it take from a company to graduate from this stage?

• Months to Exit: If a company is exiting at this stage, how many months will it take from a company to exit after it enters this stage?

Adding / Deleting / Re-ordering Stages

Any stage can be added or deleted from a sector profile.

• To add a stage, click on Add Round

• To delete a stage, click on the x icon next to stage

• To move a stage up or down, use the arrow icons to re-order the stages

Common Mistakes

• Do not delete later stage rounds, even if the fund has no plans on participating in later stages. Tactyc needs to build a future for each of your deals, and the FMV step-ups in the future depend on the valuation of the later stage rounds.

• Time to exit is the number of months you expect a company to exit after it has entered that stage. This does not mean time it takes for an investment to exit since the fund made an investment in it.

  • For e.g if Pre-Seed graduation timing is 18 months and if Seed exit timing is 18 months, the total time it would take for a Pre-Seed investment to exit after the Seed round is 36 months. Only the fraction of the Pre-Seed investments will exit during this timeframe though - and the actual number of exits depends on the Exit Rate (%) applied to the Seed round.

Constraints

• Graduation Rate + Exit Rate cannot exceed 100% for any stage

• The last stage must have a 0% graduation rate as there is nothing to graduate to.

Using Tactyc Pre-Defined Datasets

You can also apply an industry profile from Tactyc’s research team by clicking the Tactyc Datasets. Selecting one of these profiles will overwrite the current profile with data from our research profiles.

Customize with Market Intelligence from Crunchbase

You can also use Tactyc’s Market Intelligence module to gather data on round sizes and valuations by sectors or countries to help you build a custom profile. Tactyc plugs directly into the the Crunchbase API to access this data

To use this feature, scroll down to the Market Intelligence section of the Sector Profile to run a query on transactions in specific sectors and geographies. Tactyc will automatically find transactions - and summarize round sizes and valuations by percentiles.