Question 1

When does PWERM make more sense than an OPM backsolve?

Accepted Answer

When the exit outcomes are genuinely distinguishable and you can support probabilities for them — typically once an IPO or a sale process is a describable path rather than an abstraction.

Question 2

Should we be valuing more often than annually?

Accepted Answer

Many late-stage companies move to a semi-annual or quarterly cadence, because material events arrive faster and grant volume is higher.

Question 3

Do down rounds get handled differently?

Accepted Answer

The mechanics are the same, but anti-dilution adjustments and any recapitalisation terms change the share counts and the preference stack the allocation runs over.