Netherlands-based Fintech company Equidam, an online provider of startup valuations, is crossing the Atlantic and setting up shop in the US. Equidam is opening an office hosted at the well-known incubator 1871 located in Chicago. Equidam believes there is significant opportunity in the North America – specifically taking advantage of Accredited Crowdfunding, Reg A+ and the forthcoming exemption under Title III.
To date, Equidam’s automated valuations have helped over 2500 startups in the Netherlands. The company notes this is 10 times the number registered with AngelList and 4500 across the globe. Equidam is a partner for 15 investment crowdfunding platforms, among which Symbid.nl, Seedups.ca and Crowdcube.es.
CEO & cofounder of Equidam, Daniel Faloppa, states, “the dialogue between entrepreneurs and investors often breaks at the point of valuation. Equidam’s valuation gives parties a negotiation document with clearly expressed calculations, unifying the different views on value. This issue is exacerbated online, where no valuation can take place. In these cases, setting a proper, justified valuation is pivotal to the success of the fundraising effort. Equidam simplifies the process making it fast, approachable and affordable”.
The business valuation platform uses methodologies specifically targeted at early-stage companies. Startups may complete questions and financials and get an “objective” estimate of their value. They can download valuation reports for use in funding negotiations or upload them on crowdfunding platforms.
“Every shareholder wants to know the value of his/her shares. Commonly it takes months and a considerable amount of money to get even a rough estimate. Technology empowers people to get these estimates in minutes. That is what I love about what we do,” states COO and cofounder Gianluca Valentini.
One of the incorporated methods are established variations of DCF (Discounted Cash Flow) model, while the other two are adaptations of asset methods for early stage ventures. Equidam then uses machine learning and data back fitting to improve with each new datapoint gathered.