As we approach the end of Q2 2026, private markets continue to navigate heightened uncertainty—from geopolitical developments to shifts in growth expectations, the impact of AI, and increased scrutiny in private credit. In this context, robust and disciplined fair value measurement has never been more important. It is central not only to compliance, but also to how investors, boards, and stakeholders interpret risk, report performance, and make capital allocation decisions.

Most VC firms still manage cap tables, waterfalls, and ownership models in spreadsheets. And for years, that worked. But venture portfolios have become more complex. More rounds. More instruments. More reporting requirements. More LP scrutiny. This carousel explores why leading VC firms are beginning to view cap table infrastructure differently, not as an administrative tool, but as a source of better decision-making, stronger governance, and greater operational leverage acro

For a long time, compliance of fair value in venture capital, has been viewed as practically too complex and difficult to follow. Not because the standards weren’t clear. Frameworks like IPEV and ASC 820 have long defined what strong fair value looks like. But translating that into a repeatable, portfolio-wide process - across companies with evolving cap tables, SAFEs, convertibles, and layered preferences hasn’t always been straightforward. That’s where things are starting t

For years, the question of IPEV compliance has hovered in the background of Venture Capital valuations: acknowledged, respected, but often bypassed. Not ignored. Not rejected. Just… challenging. And understandably so. Historically, becoming truly IPEV compliant wasn’t easy: • It was very expensive to outsource • The concepts were hard to follow and inconsistently explained • The calculations were complex and timeconsuming • Cap tables had to be perfectly accurate (still true!

For years, cap tables lived in spreadsheets, scattered folders, and founder maintained documents. That era is ending. Today’s venture firms operate in an environment that demands faster decisions, deeper insights, tighter governance, and audit ready data, all while managing more companies with leaner teams. A next generation cap table platform (read: VCM) isn’t a “nice to have.” It’s becoming a core infrastructure layer for the entire VC organization. And the impact is felt a

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

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

1️⃣ There are three core methodologies venture valuations rely on Under IPEV and ASC 820, three frameworks dominate fair value analysis for VC-backed companies: PWERM, OPM, and CVM. Each approaches the valuation problem from a different angle and is suited to different circumstances. 2️⃣ PWERM models real exit scenarios The Probability-Weighted Expected Return Method (PWERM) values a company by modeling discrete outcomes, even incorporating future anticipated funding rounds,