Early Stage and Venture Capital Valuation 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 session explores the valuation process and details the steps of how to estimate the values of private equity, providing an overview of industry practices, models used and guidelines. Focus will be on venture capital and small company investments with a more complex capital structure.

We will touch on the principles of 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 valuation methodologies used. Although this is not an in-depth technical overview of the valuation process, it provides participants with the key knowledge and information surrounding the valuation value chain.

Important Information: This course will be delivered in a hybrid format, but please note that there are limited in-person spaces available, which are offered on a first-come, first-served basis.

If you see the "Join waiting list" button and wish to attend, please contact training@theia.org for assistance with registration.

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 during volatile markets

9:30  The fundamentals

• Differences between valuing public and private businesses
• The valuation approaches using the:
• Market approach
• Income approach (discounted cash flow analysis)
• What makes an early-stage company unique or hard to value

9:50  The waterfall and liquidation preference

• Equity allocation in complex capital structures
• What is a Cap Table and its importance
• The most common seniority structures the types of preferred shares
• Waterfall illustration and the distribution of proceeds

10:10 The alternative modelling approaches – part one

• The Current Valuation Method (CVM)

10:45 Break

11:00 The alternative modelling approaches – part two

• The Probability-Weighted Expected Return Method (P-WERM)
• The Option Pricing Method (OPM)
• When to use each model and their benefits and disadvantages
• Considerations and questions to bear in mind during volatile markets
• The adoption of a Valuation Policy Document
• What should be in the document and the use of independent valuation experts

12:30 Conclusions

Russell Hammerson

Financial Markets Specialist | Structured Products Expert | Practitioner-Led Trainer

Russell is a seasoned financial markets professional, known for his technical depth, real-world insight, and ability to demystify complex instruments through engaging, practitioner-led training.

Career highlights include:

• Over 15 years in front-office roles across global investment banks, including Chase Manhattan, Citibank, Bear Stearns, Commerzbank, BNP, and Bankgesellschaft Berlin
• Pioneered structured product innovation and equity derivatives strategy, serving on the London Management Committee at Bankgesellschaft Berlin
• Led global structured product teams, delivering fixed income, credit, and equity solutions to institutional clients across international markets
• Completed Chase Manhattan’s Advanced Financial Risk Analysis Programme and contributed to cross-divisional investment risk initiatives

Training impact:

• Over two decades designing and delivering advanced financial markets training for professionals at all levels
• Specialist in structured products, equity and credit derivatives, exotic options, and investment management
• Renowned for integrating live market data, case studies, and simulations to bridge theory and practice

Industry contribution:

• Trusted by global financial institutions to upskill teams in market dynamics, quantitative techniques, and risk analysis
• Regularly engaged to deliver bespoke programmes that reflect evolving market conditions and regulatory expectations

Recognition:

• Widely respected for his clear, dynamic, and highly practical teaching style
• Senior trainer at ZISHI, delivering cutting-edge content to empower the next generation of finance professionals

View Russell's LinkedIn Profile

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

IA Member £395.00 +VAT
Non-Member £545.00 +VAT

Pay using a credit card online, or if you wish to be invoiced please email your full details to: Training@theia.org

PLEASE NOTE: Full payment for the course must be made prior to the course commencement date.

• Any cancellation must be made in writing.
• For all cancellation received 15-30 days prior to the course start date, 50% of the course fee is still payable.
• No refund is given for a cancellation made 14 days or less prior to the commencement of a course.
• Transferring from one course to another is treated as a cancellation. You can substitute one delegate for another at no additional cost. In this instance, please give two business days’ notice.

Hybrid Training Courses:

Hybrid deliveries of our training allows participants on our courses the option to attend in-person here from our offices at Camomile Court, or you can attend virtually via MS Teams.

Please be advised a training course could change from hybrid delivery to solely virtual delivery. In such an event, we will inform delegates at least one week prior to the course delivery date.

There are a limited number of in-person spaces available on this course and this will be allocated on a first come first served basis.