Fair Value Measurements

9 Months Ended

Sep. 30, 2025

Note 5. Fair Value Measurements

The Company’s investments were categorized in the fair value hierarchy described in Note 2 – Significant Accounting Policies.

The following tables present the fair value hierarchy of the Company’s investments as of September 30, 2025 and December 31, 2024.


	September 30, 2025
	Level 1		Level 2		Level 3		Total
Senior secured convertible notes	$	—	$	—	$	68,037,542	$	68,037,542
Junior secured convertible notes		—		—		2,983,664		2,983,664
Preferred stock investments		—		—		54,475,979		54,475,979
Common stock investments		—		—		305,354		305,354
Warrants		—		—		1,142,444		1,142,444
Total investments before cash equivalents	$	—	$	—	$	126,944,983	$	126,944,983
Money market treasury fund		4,685,580		—		—		4,685,580
Total investments after cash equivalents	$	4,685,580	$	—	$	126,944,983	$	131,630,563


	December 31, 2024
	Level 1		Level 2		Level 3		Total
Senior secured convertible notes	$	—	$	—	$	54,401,998	$	54,401,998
Preferred stock investments		—		—		30,158,406		30,158,406
Common stock investments		—		—		796,904		796,904
Warrants		—		—		501,824		501,824
Total investments before cash equivalents	$	—	$	—	$	85,859,132	$	85,859,132
Money market treasury fund		5,783,352		—		—		5,783,352
Total investments after cash equivalents	$	5,783,352	$	—	$	85,859,132	$	91,642,484

The following tables provide a reconciliation of the beginning and ending balances for investments for which fair value was determined using Level 3 inputs for the three and nine months ended September 30, 2025 and 2024:


	For the three months ended September 30, 2025
	Senior secured convertible notes		Junior secured convertible notes		Preferred stock investments		Common stock investments			Warrants			Total investments
Fair value, beginning of period	$	67,456,296	$	2,982,762	$	47,616,440	$	308,085		$	1,158,843		$	119,522,426
Purchases of investments		—		—		5,466,827		—			—			5,466,827
Proceeds from deferred loan fees		—		—		—		—			—			—
Amortization of deferred loan fees		—		902		—		—			—			902
Net change in unrealized gain (loss)		581,246		—		1,392,712		(2,731	)		(16,399	)		1,954,828
Fair value, end of period	$	68,037,542	$	2,983,664	$	54,475,979	$	305,354		$	1,142,444		$	126,944,983
Net change in unrealized gain (loss) included in earnings related to financial instruments held as of September 30, 2025	$	581,246	$	—	$	1,392,712	$	(2,731	)	$	(16,399	)	$	1,954,828


	For the nine months ended September 30, 2025
	Senior secured convertible notes		Junior secured convertible notes			Preferred stock investments		Common stock investments			Warrants		Total investments
Fair value, beginning of period	$	54,401,998	$	—		$	30,158,406	$	796,904		$	501,824	$	85,859,132
Purchases of investments		5,750,000		3,000,000			16,466,826		—			—		25,216,826
Proceeds from deferred loan fees		—		(18,000	)		—		—			—		(18,000	)
Amortization of deferred loan fees		—		1,664			—		—			—		1,664
Net change in unrealized gain (loss)		7,885,544		—			7,850,747		(491,550	)		640,620		15,885,361
Fair value, end of period	$	68,037,542	$	2,983,664		$	54,475,979	$	305,354		$	1,142,444	$	126,944,983
Net change in unrealized gain (loss) included in earnings related to financial instruments held as of September 30, 2025	$	7,885,544	$	—		$	7,850,747	$	(491,550	)	$	640,620	$	15,885,361


	For the three months ended September 30, 2024
	Senior secured convertible notes		Preferred stock investments		Total investments
Fair value, beginning of period	$	48,010,841	$	22,792,710	$	70,803,551
Purchases of investments		2,500,000		3,500,000		6,000,000
Net change in unrealized gain (loss)		1,522,324		1,376,058		2,898,382
Fair value, end of period	$	52,033,165	$	27,668,768	$	79,701,933
Net change in unrealized gain (loss) included in earnings related to financial instruments held as of September 30, 2024	$	1,522,324	$	1,376,058	$	2,898,382


	For the nine months ended September 30, 2024
	Senior secured convertible notes		Preferred stock investments		Total investments
Fair value, beginning of period	$	47,827,750	$	4,368,028	$	52,195,778
Purchases of investments		2,500,000		16,624,481		19,124,481
Net change in unrealized gain (loss)		1,705,415		6,676,259		8,381,674
Fair value, end of period	$	52,033,165	$	27,668,768	$	79,701,933
Net change in unrealized gain (loss) included in earnings related to financial instruments held as of September 30, 2024	$	1,705,415	$	6,676,259	$	8,381,674

There were no transfers into or out of Level 3 of the fair value hierarchy for the three and nine months ended September 30, 2025 and 2024.

The following provides information on Level 3 investments held by the Company that were valued at September 30, 2025, and December 31, 2024, based on unobservable inputs.

          
         Fair Value as of
September 30, 2025

         Valuation Technique

         Unobservable Input

         Range (Weighted Average)1

         Impact to Valuation from an Increase in Input2

Senior secured convertible notes

68,037,542

Discounted expected return

Discount rate

27.7% - 42.1% (41.1%)

Decrease

          
         Term

         0.3 - 2.0 Years (1.4 Years)

         Decrease

Junior secured convertible notes

2,983,664

Recent transaction

Transaction price

N/A

N/A

Preferred stock investments

54,475,979

Discounted expected return

Discount rate

12.5% - 12.5% (12.5%)

Decrease

          
         Term

         0.5 - 2.0 Years (1.3 Years)

         Decrease

          
         Recent transaction

         Transaction price

         N/A

         N/A

          
         Market approach

         Revenue Multiples

         2.3 - 2.3 (2.3)

         Increase

          
         Volatility

         55.0% - 65.0% (61.0%)

         Increase

          
         Estimated time to exit (in years)

         3.0 - 5.0 Years (4.2 Years)

         Decrease

Common stock investments

305,354

Market approach

Revenue Multiples

1.3 - 1.3 (1.3)

Increase

          
         Volatility

         35.0% - 35.0% (35.0%)

         Increase

          
         Estimated time to exit (in years)

         3.0 - 3.0 Years (3.0 Years)

         Decrease

Warrants

1,142,444

Market approach

Revenue Multiples

2.3 - 2.3 (2.3)

Increase

          
         Volatility

         55.0% - 55.0% (55.0%)

         Increase

          
         Estimated time to exit (in years)

         3.0 - 3.0 Years (3.0 Years)

         Decrease

Total

126,944,983

The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment.

This column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements.

          
         Fair Value as of
December 31, 2024

         Valuation Technique

         Unobservable Input

         Range (Weighted Average)1

         Impact to Valuation from an Increase in Input2

Senior secured convertible notes

54,401,998

Discounted expected return

Discount rate

43.1% - 43.1% (43.1%)

Decrease

          
         Term

         0.9 - 2.4 Years (1.5 Years)

         Decrease

          
         Recent transaction

         Transaction price

         N/A

         N/A

Preferred stock investments

30,158,406

Discounted expected return

Discount rate

11.7% - 11.7% (11.7%)

Decrease

          
         Term

         1.0 - 3.3 Years (2.2 Years)

         Decrease

          
         Recent transaction

         Transaction price

         N/A

         N/A

Common stock investments

796,904

Recent transaction

Transaction price

N/A

N/A

Warrants

501,824

Recent transaction

Transaction price

N/A

N/A

Total

85,859,132

The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

BIP Ventures Evergreen BDC 10-Q