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.