#207 Q4 Valuations & Valuation Policy Updates (w/ Real Examples)

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• #203 VC Fund Model: DPI Forecast Template

• #202 VC Fund Math Revisited

• #201 VC News, YC, & The Future of Venture Capital

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Do You Need a Valuation Policy? Answer: Yes :)

Valuation policies play a critical role in venture capital fund management. They establish a consistent framework for assessing the fair value of your portfolio companies, which is essential for transparent investor reporting, regulatory compliance, and strategic decision-making.

Crafting an effective valuation policy can feel daunting, but we’re here to help with example templates and insights that you can use no matter if you’re a $10m fund or $1b+.

Why do you need a valuation policy?

• Transparency for Investors: Clear and consistent valuation practices build trust with your LPs

• Regulatory Compliance: Align with legal and auditing standards to avoid scrutiny that grows with AUM

• Strategic Insights: Use valuations to inform key decisions, from fundraising to exits (DPI matters more than ever).

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Not Our First Rodeo - Historical Posts to Reference:

We have a list of posts where we dove into the details of valuations and valuation policies. Check out these popular articles:

• #196 Q3 US VC Valuations Report Summary

• #182 VCs Closing Q3 w/ Playbook, Model, Valuation Updates

• #177 Top VC CFO Premium Content (Summer 2024)

• #165 Q2 PE/VC Valuation Policies & Templates (Download)

• #162 VCs Closing Q2 w/ Playbook, Model, Valuation Updates

• #123 Q4 Valuations + Real Policy Examples (Download)

• #122 Happy New Year & Q4 Valuations

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Updating Your Valuation Policy + Examples to Download

A robust valuation policy sets the foundation for transparency and credibility. For VC funds, this policy varies based on stage, sector, and fund strategy. Whether you’re forming a new fund or revisiting your approach, ensure it aligns with evolving standards.

For our premium subscribers, we’ve aggregated top example documents (including a starter valuation policy) that are easy to download and use. Start crafting or updating your valuation policies with confidence: