We realize how difficult it is to evaluate early-stage companies, scaleups, or startups; therefore, we created a startup valuation calculator. Risk factors show a high level of uncertainty, multiples are calculated using comparable transactions, and applied models adjust for exits. Furthermore, dilution from subsequent rounds, the lack of key data on multiples, and many other factors make venture valuations even more challenging than those of mature companies. Eqvista has introduced a new software where we prepare your startup valuation report.
Eqvista’s Startup Valuation Software
Eqvista’s startup valuation software is an inner built-in software where we offer a quick and easy solution to calculate your company’s value in minutes. To find out how much your startup is worth today, think like a venture capitalist, private equity firm, or smart investor.
What is Eqvista’s startup valuation software?
Think like a venture capitalist, private equity firm, or smart investor to find out how much your startup is worth today. Our valuation methods are based on institutional funding formulas used by some of the world’s leading VC firms and angel investors.
How our startup valuation software helps founders?
Our startup valuation software helps the founders to get the exact value of their assets and the company’s worth. The Venture Capital Method or Startup Rating Method is used by venture investors who want a quick assessment of a valuation with a small number of variables. The First Chicago Method, which blends market-oriented and fundamental analytics, is a more advanced technique. The “Payne Scorecard Method” and the “Berkus Method” are two methods for pre-seed or seed-stage firms. We use these three valuation methods to prepare the valuation report. Our staff collaborates together to develop the product on a regular basis.
Features we offer
There are a lot of features that we offer; apart from just business valuation analysis, we also work on the competition analysis part.
- Using the most trusted and proven valuation methodologies – Four valuation methods are used to do the startup valuation, as follows:
- Berkus method – The Berkus Approach focuses on evaluating a startup based on a thorough examination of five critical success factors: (1) Basic value, (2) Technology, (3) Execution, (4) Strategic relationships in its primary market, and (5) Production and subsequent sales are the five factors to consider. A thorough analysis is carried out to determine how much value the five main success criteria provide to the enterprise’s total worth in quantitative terms.
- Scorecard method – The scorecard company value assists angel investors in determining an average valuation for startups that have the potential to expand but have yet to generate revenue. To calculate an appropriate average, this method employs weighted percentages and market data. The target startup seeking investment is compared to other similar financed startups using this strategy. The scorecard value methodology assesses these businesses based on a number of criteria, including stage, market, and area. These elements have a direct impact on the company’s value. Such factors have an impact on the company’s typical valuation.
- Risk factor – The risk factor summation approach is a rough pre-money valuation method for young startups. The risk factor summation method bases the company’s valuation on a comparable startup’s base value. This baseline value is then modified for a total of 12 risk variables. This means that your startup is being compared to other startups to determine whether you are at a higher or lower risk. How to analyze an early-stage startup, how the startup works, how to justify startup valuation for financing, and many more questions frequently come in valuation. At the start of their fundraising journey, most founders are concerned about all of these issues.
- VC Method – The Venture Capital Method is the ideal solution. The VC method can be used to value early-stage, pre-revenue enterprises, which is why venture capitalists all over the world refer to it as a valuation strategy.
- Get accurate and professional valuation reports in 20 minutes – Once you fill in the data and provide us all your information, the software generates an automated valuation report in just 20 minutes. This report is based on the competitive analysis along with the data resources that have been provided. Once the report is generated, you will get the main valuation of your own business.
- Reliable market data – The report is based on reliable market data that showcases an excessive validity stage. This way that the information and proof accumulated are accurate. Getting the market data makes the commercial enterprise make the report more authentic and knowledgeable, and it also reduces the risk of any further loss.
How to get started?
Our startup valuation software works by first collecting the information of the startup; we first feed in the data on our software and then follow these basic steps, which are given below:
- Questionnaire – This questionnaire has a set of questions for our clients to get company details. Once all the questions are answered. We move forward.
- Visit our startup valuation software page – To get more details kindly visit our software page and check the required information.
- There is no need to prepare any documents beforehand – You don’t have to show any documents to us.
- 30 multiple-choice questions to cover your startup elements such as – The startup’s management team acts as alchemists in an ideal world for investors, turning their business idea into gold. Management teams are frequently unable to realize their creation’s full potential. You must determine what real talents the startup requires to succeed — and if it possesses or will possess them. A tech company with cutting-edge software knowledge but no business experience is unlikely to succeed. Similarly, a retailer with well-marketed products but no one who understands mathematics and is responsible for the bottom line may struggle. The client must provide a detailed description of these aspects.
- Sales and Marketing
- After finishing the questionnaire, a valuation report will be prepared immediately – You will get an automated report instantly after filling up the questionnaire.
How does our valuation report help you?
Our business valuation report helps you to critically understand the market scenario and know your own company’s worth. Our valuation report provides a judgment on the worth of shares, assets, or an interest in a firm that is based on a thorough examination and analysis of the business, its industry, and all other relevant aspects, which is appropriately substantiated and laid out in a detailed manner.
- For company funding – When investors trust in your company’s idea and find it compelling, they frequently write checks. They are certain that the founders and team can accomplish their vision, and if they believe the plan has a high possibility of success, they will invest in it. So, when you’re ready to tell this narrative, you’ll be able to raise funds at the perfect time. Though almost every founder can easily establish a reputation and a story, they must also have a product, a concept, and some client traction. Fortunately, technology has progressed to the point where a mobile app or a complex web product can be produced quickly and at a minimal cost.
- When granting employee equity – Employees are frequently rewarded with restricted stock, restricted stock units, or stock options. Employees’ interests are more closely aligned with the company’s interests when they are given equity ownership (often referred to as “stock”). This does not influence the employer’s cash flow, but it does dilute present owners’ ownership.
- Understand true company value – You may have a rough sense of what your business is worth based on simple facts like stock market value, total asset value, and company bank account balances. However, business valuations are far more complicated than that. To ensure that accurate statistics are delivered, work with a trustworthy valuations company. Knowing your company’s true value is often a decisive factor when it comes to deciding whether or not to sell it. It also aids in demonstrating the rise of a company’s income and valuation over the past five years. Potential buyers want to see that a company has grown steadily and consistently over time.
- Shareholder transfer/buy-sell agreement – When a specific event or events occurs, a buy/sell agreement is a contract between the members of an LLC that provides for the selling (or offer to sell) of a member’s interest in the firm to the other members or to the LLC. Death, disability, retirement, and divorce are all common occurrences that trigger a buy/sell arrangement. A valuation method provided in the agreement is used to establish the sales price. A predetermined price, an independent evaluation, a formula technique such as multiple earnings or book value are all common valuation strategies.
- Mergers and acquisitions & Selling a business – If a large corporation approaches you about buying your firm, you must be able to demonstrate the worth of the company as a whole, its asset holdings, how it has grown, and how it can continue to grow. Significant firms will want to buy or combine with your company for as little money as feasible. You can negotiate your way to the appraised valuation numbers offered by a well-known and respected valuation determination agency after knowing your business valuation. Reject the transaction or propose to enter mediation if you are offered less for your firm than it is demonstrated to be worth. It will assist both parties in reaching an amicable agreement.
What’s the pricing?
Although the pricing of these valuations is quite expensive, we believe in providing value with high quality and we offer pocket-friendly prices. Our pricing package is $89, with 5% off startup 409A valuation.
Get your startup valuation today!
Getting a valuation for your startup is no longer a complicated task with the help of Eqvista’s new valuation software. To get started with your startup valuation, simply create an account on Eqvista and begin your startup valuation!