Startup Falcon is pleased to announce the launch of its innovative, AI-powered valuation machine - a tool designed to facilitate the fundraising process for early-stage startups, and the investment process for interested VCs, Accelerators, and Angel Investors.
Startup Falcon is a valuation calculator that estimates a startup's pre-money valuation using its qualitative aspects. To do this, the tool relies on four methods - the scorecard method, the checklist method, the step-up method, and the risk mitigation method.
The platform will also provide users with benchmarking data and trend data based on similar deals in their selected country and industry.
Startup valuation can be a sensitive and complicated process, one particularly stressful for entrepreneurs. With such a substantial impact on the startup's potential for success or for failure, both founders and investors need to be especially cautious in evaluating a startup in its early stages.
While traditional quantitative techniques, including DCF, EPS, multiples, and comparables, build on sequential assumptions to reach an enterprise's value (especially the sales assumption), the Falcon valuation machine avoids sequential assumptions wherever possible and constrains its qualitative valuation techniques to intrinsic, value-creating drivers.
"Estimating pre-money valuation for early-stage startups and securing funding is extremely difficult," said Startup Falcon founder Eiass Muhanna. "Without having an objective estimate of a startup's pre-money valuation, and without understanding the startup's internal strengths and weaknesses, communicating with potential investors and shareholders becomes more like a general discussion that will not satisfy any of the parties."
Using Startup Falcon's AI-Powered tool, startups can access quick, easy, and reliable valuations, helping entrepreneurs get prepared for negotiations with investors.
For investors, the tool can run multiple valuations efficiently and quickly, allowing them to compare startups and choose the most promising opportunities.
"We'll valuate your startup using our industry's four most recognized qualitative methods," Muhanna said. "We have developed the most specialized qualitative valuation tool to help entrepreneurs and investors around the world, our valuation is covering every attribute of the startups, providing a comprehensive framework to valuate and validate startup ideas."
How does Startup Falcon's engine work?
Users simply fill out a specialized form describing their startups' qualitative features, such as team quality, business model, scalability, and various legal aspects.
After the form is filled out - our tool valuates a startup in three steps:
Step 1: Process the inputs submitted through the form.
Step 2: Benchmark the startup against similar deals in the same industry/country.
Step 3: Compute the final valuation using the qualitative methods.
Users will then receive a final valuation amount, accompanied by a detailed valuation per method, benchmarking data, trend data, and a startup executive summary.