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Sometimes, this can be a million-dollar question.

For a founder, knowing the company value is crucial to check if a chosen strategic course improves the value of a company. It is also a helpful number to know once a founder starts negotiations with investors.

For an investor, it is an equivalent to finding and evaluating a rough diamond out of millions of investing opportunities.

Equidam is a Rotterdam-based FinTech company, currently a leader in automated business valuation online, providing all the tools to entrepreneurs, and professionals to measure and track company worth, no matter what stage of their business life-cycle they are in.

Equidam was started in 2012 as a side project of 2 young Italian entrepreneurs – Daniel Faloppa and Gianluca Valentini – while they were pursuing the MSc in Finance and Investments degree together, and released the tool on April 2013. Their mission is to increase immediacy, objectivity and transparency of valuation, providing you the tools to instantly determine the value of your company and prove it to the world.

Answering why the company company was started, Daniel Faloppa says:

“We have always been really fascinated by the creation of companies. I think Equidam’s valuation services are a reflection of that. We are helping thousands of companies develop and grow, by simplifying decision-making and fund-raising.”

Founders found the extent of entrepreneurial overconfidence astounding, especially when a company has zero revenues. According to Equidam observations, entrepreneurs that did not make any money from any customers tend to set the highest projections, and then the moment they actually close that first customer and make that first dollar, they re-valuate their projected performance and make it reasonable.

How does Equidam work?

Equidam is designed to be simple and understandable.

After signing up, a user is presented with 10 questions to profile the company and find peers. Then, the user is already presented with a “Rough” valuation estimate. After that, a user can get deeper insights by providing his high-level financials for the next three years.

Once this is done, complete valuation is calculated, and a user can check metrics that determine the company valuation on his dashboard. This feature is free, and if then a user wishes to check more comparative analytics, and receive a 16 pages long Valuation Report, it can be done by subscribing for €27,5 per month.

Equidam uses widely accepted valuation methods based on the projections of the company performance and then discounted to present date, accounting for the all the risk factors. The tool features the Discounted Cash Flow (DCF) model based on Long-Term growth as well as Comparative Multiples, and it includes measures to estimate the country-specific risk as well as the illiquidity factor for private companies.

Also, Equidam includes the Venture Capital Method, which uses the historical returns of the VC industry.

Wanna know the value of your business? Find it out now.

For more business and finance tips, check our finance section section and subscribe to our weekly newsletters.

7 COMMENTS

  1. Arthur Gopak eosrules My pleasure. The “answer” (valuation) is a empty red rectangle (with the “Try again” button just after it). I will try to reanswer it and make sure all fields are filled !

  2. Arthur Gopak eosrules It was my fault indeed. I had not put explicitely 0 in one of the fields. (I would have expect the button to reject my attempt and tell me that all fields were not filled :))  Thank you !!

    My business is worth € 472000

  3. eosrules Any time! 🙂 If you are interested, you might want to consider this funding opportunity: 
    https://www.alphagamma.eu/entrepreneurship/pitch-your-business-and-get-funded-by-vola-investments/
    Or these opportunities:
    https://www.alphagamma.eu/entrepreneurship/get-funding-in-europe-10-grants-for-your-project/
    And these ones:
    https://www.alphagamma.eu/entrepreneurship/best-startup-accelerator-programs-in-europe/

    If you don’t want to miss any of these ones, check our weekly newsletter here: 
    https://www.alphagamma.eu/subscribe/

    Hope these will help! 🙂

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