Insights

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