EquityNet Introduces Free Valuation Calculator for Startups

EquityNet LLC of Fayetteville has moved forward with the planned release of its second free crowdfunding tool, available via its website.

Crowdfunding facilitates the raising of small amounts of capital from a large pool of investors, primarily through the use of the Internet and social media. EquityNet essentially serves as an online matchmaking marketplace for entrepreneurs and investors.

The concept of crowdfunding has gained increased attention since President Obama signed the Jump-start Our Business Start-ups Act in April. The act legalized crowdfunding for private businesses in exchange for equity stakes.

In November, EquityNet released its “Startup Risk Calculator,” which is designed to reveal risks, provide probability of success and offer strategies to increase the likelihood of success. Now it has released its “Startup Valuation Calculator,” which entrepreneurs can use to answer questions that deal with their industry sector, available cash and assets, liabilities and projected revenue, among others.

The calculator then estimates the business’ valuation and compares it to the average of peer businesses in the same industry. Like the risk calculator, the valuation calculator utilizes EquityNet’s patented “Enterprise Analyzer,” a set of questions dealing with factors such as the amount of capital invested, difficulty in obtaining funds, degree of business planning and annual industry growth rate.

CEO Judd Hollas said in a news release the tools “help entrepreneurs understand their risk and estimated valuation so they can pay attention to the factors that make the most difference.”

The tools can be found at www.equitynet.com.