Early Stage and Venture Capital Valuation

Course Overview  

The current economic environment, geopolitical uncertainty and the more recent financial markets upheavals have sparked the debate across the investment industry regarding private asset valuations. This course explores the early stage and venture capital valuation process and details the steps of how to estimate the values of private equity, providing an overview of industry practices, venture capital models and guidelines. Focus will be on venture capital and small company investments with more complex capital structures. 

We will touch on the principles of early-stage valuation using the market approach and the income approach as  standard market techniques as recommended by the International Private Equity and Venture Capital Valuation guidelines (IPEV), before diving into valuing equity interests in complex capital structures and the appropriate venture capital valuation methods used. 

Although this is not an in-depth technical overview of the valuation process, this course provides participants with the key knowledge and information surrounding the valuation value chain. 

Key Learning Objectives

• Understand the difference between valuing public and private businesses  

• Familiarise yourself with standard market valuation techniques and best practices 

• Analyse the potential drivers of valuation premiums or discounts 

• Outline the responsibilities of the triangular relationship between the investment manager, the fund valuation committees and third-party valuation providers 

• Provide a thorough summary of the equity allocation methodologies used in complex capital structures and important notes to consider 

• Discuss the adoption of a Valuation Policy Document and what should be in it 

• Considerations of valuations in volatile markets 

Who Should Attend? 

This course is delivered at an introductory and will be useful to a wide range of staff working in all areas of the business, including new starters and staff transferring between functions, as well as staff in supporting roles. It will also be a useful refresher for those with more experience who will benefit from an opportunity to improve their understanding of the various valuation techniques applied to more illiquid investments. 

• Marketing/Sales/Distribution/Business Development Officers 

• Wealth Managers 

• Risk Managers 

• Investment Operations and Administration Officers 

• Financial Reporting Officers 

• Legal Officers, Auditors and Compliance Officers