What's a tech startup worth?
That was before I got into the financial industry. Now I develop apps for that industry and I was thinking about an app to help small tech startups familiarize themselves with the financial industry and valuations by way of a quick valuation.
You would respond to 50 or so questions, if you have financial info for your company, insert it, then for a fee it gets sent straight over to a valuation pro who looks it over, crunches out a value range for your venture along with an A-F grade in 8 categories important to investors. This report gets sent back to you within 24 hours.
The value range certainly isn't a science and couldn't be relied on for tax purposes or anything like that, small tech startups are so difficult to value. But I wanted to gauge potential interest in a service like this.
I'd use valuation methods commonly used by investors and valuation professionals and send a report along with the value range and grades so that businesses have a better idea of what to expect to hear when they sit across from an actual investor or get a value from someone like y-combinator or others. I'd also have valuation professionals with many years in the business and all sorts of fancy degrees to build the methodology of valuation and to look over the generated reports. As a value added service, you could purchase a half hour or hour or so to speak with a valuation pro to go over your report with you.
Thoughts?