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,

🔹1 EV in venture isn’t observable - it’s inferred. There’s no market clearing price. Fair value reflects what a market participant would pay. 🔹2 Traditional valuation assumes fundamentals. Early stage companies rarely have revenue, margins, comps, or liquidity to anchor value. 🔹3 You’re pricing future enterprise value. It's about future upside, not current performance. 🔹4 Venture investments behave like options. Downside is capped; upside comes from low probability, hi