Platform Aims to Democratize Business Valuations
What happened
BizEquity is disrupting the business valuation industry with a cloud-based platform that delivers comprehensive valuations in under five minutes for about $90. CEO Mike Carter explained the service is designed to make valuations accessible for millions of business owners who traditionally faced high costs and long wait times.
Why it matters
- Before the advent of online platforms, traditional business valuations were primarily an offline service, costing upwards of $8,000 and taking four to six weeks to complete. Legal valuations for companies with revenues up to $25 million can cost between $10,000 and $20,000. - Founder Michael M. Carter was inspired to start the company after realizing how few resources existed for business owners to understand their company's value. Prior to BizEquity, Carter was a managing director at The Musser Group, where he worked with legendary venture capitalist Warren V. "Pete" Musser, a founding investor in companies like Comcast and QVC. - The company was founded in 2010 and was acquired by American City Business Journals in August 2019. Over its lifetime as an independent entity, BizEquity raised a total of $5.1 million in funding over two rounds from investors including Frost Brooks and Brinker Capital. - BizEquity's platform functions by analyzing 143 data points to calculate a company's value. A significant part of its business model involves distributing its software through financial institutions and wealth advisors who provide the service to their business owner clients. - The company operates within a competitive landscape of online business valuation tools. Other platforms offering similar services include Equidam, Valutico, and Capitaliz. - BizEquity has partnered with and provided its service to major financial institutions, including KPMG, AXA, MassMutual, and UBS.
Key numbers
- BizEquity is disrupting the business valuation industry with a cloud-based platform that delivers comprehensive valuations in under five minutes for about $90.
- - Before the advent of online platforms, traditional business valuations were primarily an offline service, costing upwards of $8,000 and taking four to six weeks to complete.
- Legal valuations for companies with revenues up to $25 million can cost between $10,000 and $20,000.
- The company was founded in 2010 and was acquired by American City Business Journals in August 2019.
Quick answers
What happened in Platform Aims to Democratize Business Valuations?
BizEquity is disrupting the business valuation industry with a cloud-based platform that delivers comprehensive valuations in under five minutes for about $90. CEO Mike Carter explained the service is designed to make valuations accessible for millions of business owners who traditionally faced high costs and long wait times.
Why does Platform Aims to Democratize Business Valuations matter?
Before the advent of online platforms, traditional business valuations were primarily an offline service, costing upwards of $8,000 and taking four to six weeks to complete. Legal valuations for companies with revenues up to $25 million can cost between $10,000 and $20,000. Founder Michael M. Carter was inspired to start the company after realizing how few resources existed for business owners to understand their company's value. Prior to BizEquity, Carter was a managing director at The Musser Group, where he worked with legendary venture capitalist Warren V. "Pete" Musser, a founding investor in companies like Comcast and QVC. The company was founded in 2010 and was acquired by American City Business Journals in August 2019. Over its lifetime as an independent entity, BizEquity raised a total of $5.1 million in funding over two rounds from investors including Frost Brooks and Brinker Capital. BizEquity's platform functions by analyzing 143 data points to calculate a company's value. A significant part of its business model involves distributing its software through financial institutions and wealth advisors who provide the service to their business owner clients. The company operates within a competitive landscape of online business valuation tools. Other platforms offering similar services include Equidam, Valutico, and Capitaliz. BizEquity has partnered with and provided its service to major financial institutions, including KPMG, AXA, MassMutual, and UBS.
