Key takeaways
- “Indicative” is doing real work in that phrase: the number describes context, not an executable price.
- Indicative marks are assembled from recent transactions, comparables and estimates, each with a lag.
- Use them to frame a range and to sanity-check a counterparty, never as a valuation of your own stake.
Public quotes are executable: see the price, trade at (or near) it. Private-market figures are indicative: estimates of where a trade might clear, assembled from whatever evidence exists. The word is doing honest work — it is telling you the number is a reference point, not an offer.
Where the number comes from
Indicative prices are built from inputs of very different quality: completed secondary trades (the best evidence, when recent); live bids and asks that may never meet; funding-round terms, which price preferred stock (not the same thing); 409A appraisals, built for tax; and models extrapolating from comparables. A responsible platform tells you which inputs stand behind each number — that is exactly what the source-tier badges on our company browser and the methodology notes in Price & Data exist to do.
Why it can’t be a quote
Three gaps separate indicative from executable. Staleness: the last real trade may be months old, and the company’s prospects have moved since. Spread: thin markets carry wide gaps between what buyers bid and sellers ask; a midpoint is a compromise, not a clearing price. Specificity: your shares — their class, size, and transfer restrictions — may price differently from the shares behind the reference number.
Using indicative prices well
Treat them as a sanity check, not a valuation of your net worth. Compare any real offer you receive against the indicative level and its sources — an offer far below a well-evidenced level deserves questions; one far above deserves suspicion. Watch direction over time rather than any single print. And when a number matters — a sale, a tax event, an estate — get a real valuation or a real bid, because only one number ever counts: the one a buyer signs.
Educational only. InvestNow is a demonstration platform. This page is general information, not investment, legal, or tax advice, and not an offer or solicitation of any security. Private-market investments are speculative, illiquid, and can lose their entire value. Consult a qualified professional about your circumstances.