How to Value Venture Capital Portfolio Investments Reviewed by Momizat on . This blog discusses the four-step process for providing fair value marks for venture capital fund investments in pre-public companies: 1) examining the most rec This blog discusses the four-step process for providing fair value marks for venture capital fund investments in pre-public companies: 1) examining the most rec Rating: 0
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How to Value Venture Capital Portfolio Investments

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This blog discusses the four-step process for providing fair value marks for venture capital fund investments in pre-public companies: 1) examining the most recent financing round economics, 2) adjusting valuation inputs to the measurement date, 3) measuring fair value, and 4) reconciling  and testing for reasonableness.   Sujan Rajbhandary, vice president in Mercer Capital’s Financial Reporting Valuation Group, discusses each step in the process including the option pricing method (OPM) and the probability-weighted expected return method (PWERM).

Find out more in the Mercer Capital’s Financial Reporting article,  How to Value Venture Capital Portfolio Investments.
This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit http://mercercapital.com/category/financialreportingblog/.

The National Association of Certified Valuators and Analysts (NACVA) supports the users of business and intangible asset valuation services and financial forensic services, including damages determinations of all kinds and fraud detection and prevention, by training and certifying financial professionals in these disciplines.

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