When a startup is ready to raise capital, pre-money valuation is the first step that needs to be taken. It is a starting point to begin negotiations between entrepreneurs and investors. However, startup valuation drastically differs from the valuation of the established companies. High risk of failure and little or no revenues make traditional methods of determining the value ineffective. The fact that entrepreneurs always seek more money and investors always seek more equity often slows downs negotiation process.
Worthworm was designed to address this challenge and provide affordable, rigorous valuation tool for early stage ventures that provides comprehensive, credible and defensible pre-money valuation.
The tool is based on a blend of the valuation methodologies widely accepted by seasoned angel investors, third-party valuation companies. By using Worthworm, entrepreneurs will also gain a deeper understanding of the risks and opportunities they can use to negotiate higher pre-money valuation.
Worthworm is a web-based valuation tool for early stage companies seeking angel investment. The web-based tool incorporates widely accepted valuation methods, third-party valuation comparables, and proprietary technologies to provide users with a credible, defensible pre-money valuation with which to enter into negotiations. For angel investors, Worthworm’s questionnaire standardizes a portion of the due diligence process, whether used as a screening tool or for future analysis. After investment, Worthworm becomes a strategic management tool helping entrepreneurs and angels evaluate opportunities, risks, and strategies amid the venture’s changing circumstances. For more information, please visit http://www.worthworm.com.
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