Insights

From Clarity to Confidence In my article - VC Waterfall Calculations: The Hidden Engine Behind Cap Table Clarity , I argued that waterfall calculations are the hidden engine behind cap table clarity. But clarity alone isn’t enough. In venture finance, clarity must translate into confidence, confidence in valuations, negotiations, and ultimately, decision-making. When founders, CFOs, and investors understand not just what they own  but what they can get , they unlock a new lev

Continuing our mini-series on valuation myths in venture capital, we’ve already looked at cost and last price per share . Now let’s turn to another commonly used approach: the enterprise value (EV) waterfall. At first glance, the waterfall feels logical: start with an enterprise value, then allocate it down the capital structure according to preferences and rights. But here’s the problem: the “EV then waterfall” is not consistent with IPEV or ASC 820 fair value principles (

Not quite. Ownership shows who holds what, but not necessary who gets what - at exit. 🧩 The Missing Piece: Waterfall Calculations Exit outcomes hinge on share class rights and preferences. Without modelling those, your cap table is just surface-level. 🔍 Why It Matters Waterfalls are the hidden engine behind: •⁠ ⁠Cap table modelling •⁠ ⁠Professional fair value assessments •⁠ ⁠Accurate Exit distributions 👉 Our carousel breaks it down: how the waterfall rather than just the c