David Mesner, Senior Valuation Analyst for Ipreo Private Capital Markets, has the market cornered on compelling reports about the valuation process within the private markets.
Earlier this year, he delivered a three-part series in which he discussed the various facets of valuation, from documenting standard assumptions to outlining specific subjective inputs and when one should use a non-traditional approach.
Today, he returns to tackle the backsolve.
“This is a familiar crossroads in the venture space as companies that recently raised an equity round still need time to grow and generate momentum before showing financial gains. Given the early stages of operations for a number of investments and limitation of inputs for valuation methods, this is where the backsolve shines.”