Worthworm Wisdom

Insights for entrepreneurs & investors

5 Ways Entrepreneurs Can Make Their Lives Easier with Worthworm

Posted by admin on 2013-10-31 04:18:43

Being an entrepreneur is often an exhausting and stressful job. You’re constantly faced with questions about how to value a business, along with pressures to get your product out there, increase sales, have a plan…the list goes on and on. Raising capital can be one of the most taxing parts of getting your company to the next level, but Worthworm is here to change that. Here are five ways that the tool can make your life as an entrepreneur easier.

1. Get help calculating a credible pre-money valuation (PMV) that you feel confident sharing and defending.

One of the first questions that a potential angel investor will ask is, “How much capital are you looking for?” or “How much do you think your company is worth?” Up until now, entrepreneurs have had two lackluster options for figuring out how to value a business that’s pre-revenue:

  • Using simplistic spreadsheets that take hours to customize for your venture and usually only take into account one valuation method
  • Hiring an expensive consultant who would charge thousands of dollars that you probably don’t have

Even worse, both of these options still leave you wondering whether or not a potential investor will find the calculation credible. This scenario frustrated us, so we decided to develop a better solution. Worthworm calculates your PMV with a sophisticated analytic engine that uses thousands of parameters and outputs, blends the most widely respected valuation methods, and compares third party research data about companies at the same maturity level. The result? A credible PMV that you can proudly share with any angel investor.

2. Avoid contentious and uncomfortable discussions with angel investors.

As angel investors, it’s their job to hammer you with in-depth questions about your business and ensure that it’s a worthwhile investment for them. Worthworm’s in-depth questionnaire challenges you to think like an investor and answer questions that you’ll probably be asked at some point during funding negotiations. After going through the questionnaire and using our interactive tools, you’ll be prepared to answer those tough questions, in addition to having a sound PMV that moves the focus away from valuation methods and toward the merits of your venture.

3. Collaborate with key stakeholders to make the funding process more efficient and aligned.

We know that it takes a village to raise a venture. That’s why we’ve built collaboration functionality into Worthworm that allows you to invite partners, employees, accountants, lawyers, and potential investors to have a “seat” at your table. Then, they can help you complete the questionnaire, assess risks and opportunities, and develop strategies to drive the venture toward success. Plus, you control what they each see and do, so you can maintain confidentiality and reduce confusion.

4. Improve your chances of closing a transaction.

With a sound PMV and robust tools that allow you to thoroughly analyze your venture’s risks and opportunities, Worthworm helps bring you closer together with angel investors from the outset and secure funding faster and easier than ever before. After going through its in-depth questionnaire and interactive tools, you’ll feel confident and prepared to answer just about any question that investors may have.

5. Increase your venture’s probability of success in the long run. 

Worthworm’s interactive tools and reports use proprietary Real-Options technology to analyze your venture’s risks and opportunities and help develop strategies that will increases your chances of long-term success. In addition to being a powerful PMV resource, the tool is ideal for managing your venture on an ongoing basis. You can revisit the questionnaire regularly and before meetings with executives to maintain an accurate PMV and see how changes in your venture affect its risks, opportunities, and valuation.

Curious about how much your venture could be worth? Or looking for a world-class teaching tool? Or are you trying to do due diligence on potential deals?  Then try a subscription to Worthworm, and let us help you.