Feedback on Idea: Automated Financial Valuation and Feasibility Study for Startups and SMEs

Tarek Dajani
2 replies
Since I have been working in the financial field now for almost ten years, I have seen and helped tons of startups and SMEs needing to value their Company or understand the feasibility of their project pre-launch. This is usually required for various reasons, investors, fund raising / capital increase or undertaking a loan to name a few. Most of the time, this usually entails the payment of an amount that is too expensive for the Company at that time (both startups and SMEs). Additionally, sometimes they need a nice report to submit to their stakeholders (shareholders, banks, etc..) The idea I am working on is to create a platform which enables users to perform their own valuation or feasibility study report, by answering a few qualitative and quantitate questions themselves (of-course, I will be explaining the questions that might seem difficult to understand), the pricing of the report will be below the USD100 mark and the report will be around 12-15 pages long which will include all the company details and financial analysis that one would usually need to understand about any business. Also, I will give the users a 30 day access to change their report inputs and generate new reports anytime. At the beginning, I will focus strongly on customer support as I am expecting that users would need help in answering some of their questions plus it would be a great way to get early feedback. What do you think, is that a problem you think might be worth solving?

Replies

Wael Khattar
Co-Founder of Anachron Technologies.
Early stage startups are not valued based on Financials, but based on negotiation skills. This could work for more advanced startups with 2-3 years worth of financial statements. I've seen a few platforms that do the same thing (Check www.instaval.co), they started with this idea and then expanded their offering. I'm not sure how well they're doing but it would be interesting to take a look.
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Tarek Dajani
Founder @ Front Figure
@wael_khattar1 Hi Wael, yes I understand that. My platform will only provide a "fair valuation" but actual valuation ofcourse may vary depending on the negotiations and demand. I am aware of Instaval, they provide a rough estimate valuation, I am planning on providing something more advanced with the option of generating a 12-15 page report. Also, I will provide feasibility study services, which could be used for people who just have an idea and want to understand its financial validity. Thanks for the feedback.