Raising money from an investor today is like taking a business loan from a loan officer in the 1950’s:
Sitting in front of a loan officer, Putting your best suit on, Bringing a presentation, and Baking them cakes (if that was your thing).
PROBLEM 1: PERCEPTION
With no priced financing round, no revenues, and no substantial assets, traditional finance theories can’t help entrepreneurs who want to establish the value of their startups.
VeeSee is a tool that helps entrepreneurs get a pre-money valuation based on factors relevant to an early stage startup (and their potential investors).
PROBLEM 2: DATA
Just as individuals were (perceived) to be unique, we look at startups as unique opportunities.
Loan officers used to call merchants and ask if an individual paid their bills on time. Similarly, startups keep their information private, and standardizing disparate data across companies is time consuming
1. Educate ourselves that companies, like people, are not that different from oneanother. They are all just trying to make money.
2. Take lots of data, figure out which ones are important, standardize them, and look for trends.
Current fund raising practices are archaic due to complexity in one question:
What’s the value of a prototype and a vision?
We set out to find the answer to that question.
"VeeSee" is a tool that helps entrepreneurs answer that same question.
Reduced cost of innovation means many of the paradigm shifting innovations are happening at the earlier stages of a company’s life cycle.
We wanted to create a tool that would enable entrepreneurs to set their company’s valuation based on better insight and clarity of the market, and help investors better communicate their reasoning behind their offers.
We attended dozens of pitch events, talked to many more investors, and analyzed hundreds of pitch decks and term sheets. Our analysis showed that the value placed on a startup can be defined by the quality of the management team, the size of the market, stage of the product development, the established distribution channels, the competitive advantage, traction, and the network effect of these factors amongst each other.
We are two guys that wanted to help the industry by joining finance and data-modeling skills with programming and design expertise. Our goal is to take the guess work out of valuation, capacitate entrepreneurs to focus on building great companies, and investors to provide great guidance.
Keyvan Firouzi, CFA
Keyvan is a data-junkie. He’s a partner at Preferred Return, one of the largest valuation firms for early stage startups. He’s honed his data modeling skills working at the risk management group of PwC, and performing hundreds of startup valuations at Preferred Return.
Mani is a technologist, artist, teacher and musician. He earned his MFA in Design & Technology at Parsons School of Design. By day, he is a front-end engineer at The Daily Beast and by night he plays music and works on his side projects.