Entrepreneurs from all kinds of industries use valuation tools to assess the monetary value of their businesses. From civil engineering, cosmetics and staffing to recruiting and sporting goods – valuing a business is a process that is applicable to every business across the globe that wants to know where their business is and how it will develop over time.
Valuations and Fundraising
Many founders may wonder what should be the asking valuation for a fundraising startup?
rowdfunding and other fundraising tools are on the rise. Today, non-accredited investors can become a shareholder of your company; which was once not possible.
To determine how many shares to allocate for a certain amount of money, one should first know the value of a company. A valuation tool offers a quick and thorough way to value a businesses to aid in fundraising efforts.
The same story applies to angel investors and venture capital firms. The main difference, however, is that they invest directly in the firm and thus become shareholders themselves, whereas a fundraising platform aligns demand and supply of capital.
Now tools allow entrepreneurs to take care of their financials themselves, so are financial experts now more abundant? No, absolutely not. At Equidam, we think these two will complement, rather than substitute each other. That is also why we opened up our platform to financial professionals- to assist small business owners with their financials and expand their customer base.
Financials can be a hurdle. However, with user-friendly business valuation tools you just have to complete your company profile and the tool can take care of the rest. Best of all you don’t have to be a financial wizard!
This article has been edited and condensed.
Daisy de Vries is the Marketing & Communication manager at Equidam, an online value management tool for small businesses. Her passions are startups, writing and technologies. Keep investors up-to-date in a consistent and efficient way with the Equidam valuation report. The report gives a clear overview of the performance of your company and enables you and your capital providers to understand and manage the value of your business. Connect with @equidamtweets on Twitter.
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