To mark down your portfolio or not mark down your portfolio? that will be a question many enterprise capitalists are grappling with proper now.
however first, what does that imply? VCs maintain a working tab of the worth of every fund and full portfolio based mostly on the prior valuations every agency raised at. the worth of every agency usually solely will get up up to now when it raises a spherical at a mannequin new valuation, and corporations usually do a full valuation audit on the tip of every yr.
whereas, sure, enterprise capitalists solely have to audit the worth of their portfolios yearly for his or her LPs, it’s usually thought-about good religion to take movement if there’s an outsized opposed event impacting a particular agency or all of the portfolio.
As market circumstances proceed to worsen, and agency valuations proceed to fall, many VCs are sitting on portfolios with outdated and inflated valuations. I’d enterprise that it might probably be sensible for retailers to take a look now and maintain away from ready till the tip of the yr.
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