Australian-Asian technology incubator Incipient IT accelerates and incubates innovative concepts via the co-development and funding assistance of early-stage ventures. Startups in its portfolio include video conferencing startup Expert Cave and Data and Analytics / FinTech startup Wise Owl.
Earlier this month the team, lead by founder Matt Dibbs, launched a new valuation tool for startups that allows startups of all sizes, no matter what stage they are at, to get an instant and free valuation on their company using the same metrics that many sophisticated investors use during fundraising activities.
Startupvalue.io launched via tech and media discovery site Product Hunt and generated over 5,000 valuation reports for startups across 35 different countries.
“It’s a reality that most founders who have put their blood sweat and tears into their projects simply don’t know how valuation mechanics work,” said Dibb. “Using a free tool such as startupvalue.io allows them to gain a practical understanding of what investment firms are looking for and how it is that they arrive at that first private equity valuation when it comes time for funding.”
Dibb employed a team of CFA and graduate VC / equities analysts to simplify complicated financial models into a streamlined model that made the information easy to understand by the standard founder.
The tool has a straight forward user experience, asking the user a short series of questions and then automatically picking the most relevant valuation model based on the answers around their startup’s circumstances.
The platform will then ask them to answer a series of relevant financial questions to obtain a ‘Net Present Value’ of the company, which is then translated into a simple and straight forward report for the user in just a few minutes.
“This [has been a bit of a] passion project,” said Dibb. “It is a way to create transparency for other founders in the startup community before approaching funding from VCs and angels.”
The current version of the platform is the company’s MVP and now that validation has occurred, Dibb has confirmed that he will be launching a full scale service next month.
“Our next update will include realtime company comparable APIs,” said Dibb. “That means we can further refine valuations and give the end user even more accuracy. This will effectively allow them to also formulate valuations based on the funding of other competitors in their industry.”
Image: Matt Dibb | Source: Provided.