1. A solid cap table strengthens every valuation approach 🔍 Whether using OPM, PWERM, or CVM, every method becomes more reliable when it’s built on accurate ownership data. 2. High‑quality inputs unlock high‑quality valuations 📊 Even the most advanced models are only as strong as the data behind them. Reliable valuations depend on clean, complete, and well‑structured information, starting with an accurate, up‑to‑date cap table. Without that, the integrity of the valuation f

I’ve spent a lot of time breaking down how VCs can approach fair value using OPM, PWERM, and CVM. Each methodology has its own logic, assumptions, and ideal use cases. But despite their differences, they all share a single foundational dependency that determines whether the output is meaningful or misleading: If your cap table isn’t accurate, your valuation isn’t accurate. This is the part of valuation work that often gets underestimated. It’s easy to focus on the modeling te

(This post is longer than the previous ones, but because OPM plays such a central role in fair value methodologies, I’m going to be especially thorough here.) As we continue our look at fair value methodologies for VCtype investments under IPEVand ASC 820, one method consistently rises to the top in conversations with practitioners. After more than 50 discussions with VCs, CFOs, controllers, and valuation professionals, the most frequently mentioned — and most frequently misu

Valuing early‑stage companies has always required judgment, but the 2025 IPEV Guidelines sharpen the boundaries around when certain methods could be used. One of the most important updates relates to the Current Value Method (CVM). Historically, IPEV allowed CVM when an exit was expected “in the near future.” The 2025 update tightens this significantly: ⚠️ CVM is now appropriate only when an exit is imminent (IPEV Dec 2025 – Page 41) This is more than a wording change — it’s

As we continue our dive into fair value methodologies, what qualifies, what doesn’t, and how to make sense of it all, PWERM stands out as one of the most approachable tools for venture backed companies working under ASC 820 and IPEV. It’s surprisingly intuitive once you get past the jargon. At its core, PWERM isn’t just about running numbers; it’s about mapping the real paths a startup might take and understanding what each one means for shareholders and fair value. VCs alrea

In previous posts, I’ve focused on what not  to use  when valuing early‑stage, venture‑backed companies under IPEV and ASC 820. We’ve covered why l ast price per share , cost , and inappropriate use of waterfall allocations  often fail to meet fair value requirements, especially when capital structures are complex or when market conditions and company performance have shifted since the last financing. Those approaches may feel intuitive, but they rarely reflect the economics