The New Valuation Guidelines for Venture Capital and Private Equity

For those who missed the new IPEV Valuation Guidelines introduced in Dec 2018, here are the highlights.

The objective of these guidelines is to set out best practice where VC and PE investments are reported at ‘Fair Value’, to standardise the approach worldwide and hence to help investors make better economic decisions.

The most important change is the separation of the basis of valuation, which defines what the carrying amount purports to represent, a Valuation Technique, which details the…