Most founders, operators, and even many investors understand parts of VC economics: • Dilution • Valuations • Term sheets But the real insight comes from connecting them into one system. At its core, venture economics can be understood as two sets of three: 🔹 1) Cap Table Economics — The Rules of the Game This is where value distribution is defined. 1. Share classes Common vs. Preferred (and the variations in between) 2. Shareholders Founders, investors, employees 3. Rights

In venture, the CFO’s world is built on precision. Every ownership change, every SAFE conversion, every pro rata calculation, every fund-level allocation — it all flows through the cap table. And for years, spreadsheets have been the default home for that data. But the reality is this: VC CFOs aren’t moving off spreadsheets because they’re broken. They’re moving off because they’re too slow. Not slow to open. Slow because of the hours they demand - hours spent maintaining for

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

🔑 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