As early-stage companies grow and mature, the likelihood of heading down the path to an initial public offering (IPO) may begin to develop into a desirable reality for venture capital firms and their investors. The closer a company and the VC firm get to that possibility the more valuation becomes a necessary part of the process.
Start-up company valuations are as much art as they are science, but a reasonable conclusion of value remains a necessity even in situations where the inputs may rely more on portfolio theory rather than actual company value.
VC firms must work with a valuation expert like VRC that understands the complexities of pre-IPO valuations and has developed cost-effective methods to provide a determination of value that can pass muster with a rigorous SEC compliance review and deliver reasonable and transparent investor reporting.
Venture Capital Firm Services
Valuations for complex instruments such as options, warrants, convertible bonds, contingent consideration, preferred & common stock
IPO Readiness & Equity Compensation
Companies need valuations for various forms of equity-based compensation. Early-stage companies need a valuation health-check, pre-IPO