Startup
Valuation Calculator estimates and compares business valuation in minutes
Fayetteville, AR – EquityNet
announced today the availability of their Startup
Valuation Calculator, the second of their fast, free, and easy-to-use Crowdfunding Tools. The interactive
Startup Valuation Calculator complements EquityNet’s first free crowdfunding
tool, the Startup Risk Calculator, which the company released earlier in Q4
2012.
In the free
Startup Valuation Calculator, entrepreneurs answer questions that deal with
their industry sector; their current cash and other assets; current
liabilities; estimated annual revenue now and in 5 years; and estimated
operating profit now and in 5 years. The
calculator immediately estimates the business’ valuation and compares it to the
average of peer businesses in the same industry sector. Both the Startup Valuation Calculator and Risk
Calculator enable entrepreneurs to easily share their specific results via
LinkedIn, Twitter, and Facebook.
Like the Startup Risk Calculator, the Startup
Valuation Calculator is suited for businesses that are five years of age or
younger and leverages EquityNet’s patented Enterprise Analyzer™ system, a
proven methodology for calculating business risk and valuation. Results
from the Startup Valuation Calculator are based on real market data gathered by
EquityNet from more than 3,000 businesses across North America. The educational
questions used in the Valuation Calculator were chosen from the wide-ranging
list of questions that EquityNet’s business planning and analysis software,
Enterprise Analyzer, uses to determine a more precise business valuation
calculation.
EquityNet
developed their suite of free crowdfunding tools in response to widespread
interest in equity crowdfunding as provided in the Jumpstart Our Business
Startups (JOBS) Act that President Obama signed into law on April 4,
2012. The JOBS Act relaxes regulations
on fundraising for privately-held businesses and gives online funding platforms
like EquityNet more flexibility in facilitating that fundraising. The
crowdfunding provisions of the Act are getting the most attention because they
will allow entrepreneurs to solicit the general public for investment, an
activity that was previously prohibited. Proponents of the Act state that it will
directly lead to more businesses starting and to increased employment – and that
it will encourage business and technological innovation in the U.S.
Judd Hollas, EquityNet’s Founder and CEO, said
“Entrepreneurs are intensely interested in preparing for the coming of equity
crowdfunding next year. We are glad to provide these free crowdfunding tools to
let our EquityNet site visitors see if they’re on the right track as they prepare
to raise investment and pursue their business opportunities. The tools also establish an excellent
introduction to our full business plan software and
analysis technology and our funding network.”
"Business
startups are surrounded by myths and half-truths, so our Startup Risk Calculator
and our Startup Valuation Calculator are great tools that help entrepreneurs
understand their risk and estimated valuation so they can pay attention to the factors
that make the most difference,” Hollas explained. “And if an entrepreneur needs to re-evaluate their
strategy, these fast, free, and easy tools are excellent exercises to know
where to start.”
EquityNet’s Crowdfunding Tools and Startup Valuation
Calculator can be accessed and used for free at www.equitynet.com/crowdfunding-tools.aspx.