It’s Easier Than Ever to Actually Be. 📝 Every year, firms sign financial statements referencing IPEV / ASC 820. Most realize they may not be fully aligned with the modern standard, and have simply continued using the familiar approach the industry has relied on for years. 🤝 Side letters smooth things over. Audit notes get tucked away. The disclosures look routine. And the signatures go on. But it’s worth asking, honestly: 🔍 You know you’re not fully IPEV / ASC 820 complian

Most VC firms still manage cap tables, waterfalls, and ownership models in spreadsheets. It’s familiar, flexible, and deeply embedded in how the industry works. And for many years, it was more than enough. But the landscape has changed. More companies. More rounds. More complex instruments. More LP scrutiny. More valuation pressure. More governance expectations. A small but growing group of forward thinking VC firms have started adopting next level cap table platforms, not be

Fair value in venture is getting a second look. Not because firms have been doing it wrong but because the landscape is changing. Standards are converging around OPM and probability based fair value methodologies. And while LP expectations haven’t fully shifted yet, the growing involvement of institutional investors, especially pension funds, is likely to raise the bar. As these LPs enter the venture market, auditors will also need to consider how they sign off on fair value

A growing number of VC firms are reevaluating how they approach fair value, not because they’ve been doing anything “wrong,” but because the landscape is shifting in ways that make stronger valuation practices both more practical and more valuable. Technology has lowered the cost and complexity, LP expectations are rising, and industry standards are converging. For many firms, it’s becoming worth a closer look. Why It’s Becoming Worth the Effort • Standards are converging tow

🔑 Key Takeaways • VC valuations require a different mindset than PE. Early stage companies behave like options, not steady state businesses. • OPM, PWERM, and (rarely) CVM are the right tools for capturing uncertainty, optionality, probability, and complex capital structures. • Fair value and investment analysis share the same foundations. The same models used for ASC 820 compliance — OPM, PWERM, breakpoints, and probability based waterfalls — are also the backbone of due

Venture capital investments rarely follow a straight, predictable path. Instead, they move through distinct phases—moments where a company’s trajectory, risk profile, and market context shift in ways that require us to rethink fair value. Each stage demands a different lens, because what a market participant would pay (or expect) evolves as uncertainty unfolds. In this series, I’ll explore these valuation moments through the frameworks that guide our industry: IPEV , ASC 820