Insights

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

After digging into the most common valuation shortcuts in venture capital, a few clear truths emerge: 1️⃣ Cost is not fair value Cost is historical. Fair value is current. IPEV and ASC 820 are explicit: once new information exists, holding at cost stops being conservative and starts being misleading. 2️⃣ Last price per share ≠ portfolio truth LPPS reflects one deal, at one point in time. It ignores preferences, protections, optionality, and changes in performance or market