Remove EBITDA Remove Events Remove Terminal Value
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Demystifying Valuation Clauses in LPAs for Emerging Managers

Equidam

In essence, the valuation clause sets the ground rules for measuring your portfolio’s performance between the big exit events. LPs evaluate a fund’s success not only at the final cash return, but also through interim reports that show the fair value of the startups in your portfolio. Why do valuations matter so much?

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Startup Valuation: The Ultimate Guide for Founders

Equidam

1] Unlike valuing established public companies with long track records and stable earnings, startup valuation operates in a realm of high uncertainty. [2] 17] [32] [37] Valuation as an Ongoing Process Finally, remember that valuation is not a static, one-time event. Secondary Transactions and Liquidity Events.