Documentation

The Codon Valuation connector gives AI assistants a valuation model for estimating the value of a private company's common (US) or ordinary (UK) shares before a formal valuation.

Setup

Claude

Go to Settings, Connectors, Add custom connector, and paste https://mcp.codonvaluation.com/mcp.

ChatGPT

Add the same URL as a custom connector in developer mode.

No account, sign-in or API key is required.

Tools

estimate_409a_value
Indicative fair market value range per common share of a US private company, in US dollars.

estimate_emi_share_value
Indicative market value range per ordinary share of a UK private company, in pounds sterling.

get_formal_valuation_info
The documents and process for a formal 409A or EMI valuation, and how to request one from Codon Valuation Advisors.

All three tools are read-only. They make no changes anywhere and call no other services.

How the estimate works

The method depends on what the company provides:

Priced round in the last 12 months: an option pricing model is calibrated to that round (a backsolve). Confidence: high.
Older priced round: the round is rolled forward and adjusted for performance since, and blended with a revenue multiple where revenue is given. Confidence: medium.
No priced round, with revenue: a sector revenue multiple, adjusted for cash and debt. Confidence: medium.
No priced round, pre-revenue: a range between net assets and total capital invested. Confidence: low.

Value is allocated across share classes with a Black-Scholes option pricing model, then a discount for lack of marketability is applied using the Finnerty and Chaffe models. The result is a low, mid and high value per share, with all assumptions shown.

Example prompts

"We raised a $10M Series A at $2.00 a share four months ago. We have 8M common shares and 5M Series A shares. What will our 409A come in at?"
"Our UK startup has 1M ordinary shares, £800k revenue and no priced round yet. Roughly what would our EMI exercise price be?"
"We haven't raised a priced round. We've put in $1M and have $400k in the bank. Estimate our common stock value."
"What documents do I need for a 409A and an EMI valuation?"

Limitations

Results are indicative planning estimates. They are not a 409A valuation, do not provide safe harbor protection under IRC Section 409A, and are not a valuation agreed with HMRC.
All preferred shares are treated as non-participating, pari passu, with 1:1 conversion.
Outstanding options are modelled as one group at their weighted average exercise price.
SAFEs and convertible notes are not modelled. Flagging them lowers the stated confidence.
Sector volatilities and revenue multiples are practitioner assumptions, reviewed quarterly.

Support

Email hello@codonvaluation.com.