Riskiest Common Stock

One way to quantify this risk to common shareholders is to look at the Coverage Ratio, which is the current market capitalization of a company as a percentage of the total funding amount raised. Companies with less than 100% Coverage Ratio would return zero to common shareholders if liquidated today at the current market capitalization.

Notice selects the lowest Coverage Ratios from more than 5,000 private companies using the following criteria: First, the real-time market capitalization is calculated by multiplying the current Notice Price by the estimated shares outstanding. Second, the total amount raised is calculated for all known funding rounds. Third, the real-time market capitalization is divided by the total amount raised, expressed as a percentage and sorted in ascending order. Companies with an unknown real-time market capitalization are excluded. If the amount raised in a funding round is not disclosed and cannot be calculated, Notice treats the amount raised for that round as zero. In such cases, the reported Coverage Ratio may be artificially high. Rankings are updated daily at 12:00 am ET.