@rotemthegolfer the valuation is based on the same methodology that 'funding firms' will use when trying to value your company. We analysed the investment criteria from some of the largest VC firms globally and averaged out the data based on your industry. Depending on the valuation you chose (VC, DCF or CFME) it will give you a net present value using the exact same investment process as would be used in funding rounds. The accuracy is dependent on your input, however we have made it as seamless as possible with validation of your input to ensure there are no significant outliers that could cause a substantial inaccurate value in the end result.
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Looks good, but why would you ask for the logo and the site? I mean I want to see the results before making such an effort to upload a logo. Think about the drop rates at that stage.
I don't think the SAAS math is right? Typical SAAS multiple is usually around 7 at a minimum. Especially when revenue is pretty well guaranteed without much push for sales. I'm guessing it's a bit more geared towards VCs though? Missing questions about previous rounds, more detail on actual monthly or weekly growth, etc. Killer idea though!
On the landing page, instead of asking "What type of startup you are?" I would reword to "What type of startup are you?" Better grammar equals more confidence towards your service. I hope this helps! :)
@kris_bethea forgive my dyslexia. you're the first let us know about that!
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it seems like an interesting idea; but this is not useful for seed stage startups.
I typed in the details of a company that I previously advised (who hadn't built any product or got any revenue or anything), at the seed stage and said I wanted to raise $1m. It suggested a valuation of $165m post-money...
@_jacksmith by that methodology the total addressable market and annualised revenue that you entered would have been huge. The end valuation would be affected by this assumption.
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@matt_dibb I entered the current annualized revneue as zero.
a seed stage startup with no product/revenue shouldn't be worth $165 million regardless how huge the market size is imho...
@_jacksmith check your average revenue per user per annum. Your input would have been a huge TAM with a large revenue per annum (or vice versa). As you said though, this isn't exactly for seed staged capital rounds.
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@matt_dibb I was using coin as an example. So put $50 as the arpu
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Its a superb idea, but it limits people to value startup ideas as it asks for the website of the startup being valued. Idea stage startups wont have a website, but this tool will be invaluable for them to validate their pricing assumptions.
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@jaymanpandya I have everything for my site but content😞!! IT'S LIKE I drew a Hugh blank!! 3months now
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