Early Software Company Valuation: Source of Information

Simon Westbrook's Profile

We are discussing investment in a pre revenue software company that has developed a mobile application for the healthcare industry. On the plus side we can demonstrate the product in action, on the minus side we havnt actually sold any products/ licenses yet. Hence the valuation proposed by a would-be investor is very low.  We are looking for some ammunition to argue back on potential value of similar peer companies.

Does anyone have any information on a source to find a list of historic deals indicating prices at which early stage software companies may have been acquired. The bankers always seem to come up with lists and databases, but this deal is too small for a banker.

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Answers

Proformative Advisor
Member's Profile

Search Crunchbase, the website that reports deals, you might be able to find your industry there with a few deals.

http://www.crunchbase.com/

The other thing you might try is contacting some of the companies in the same space and find out who their investors are and see if you can network.

Vertafore.com is a private company that is developing tools around the medical insurance claims industry. I'm not sure what your software is specifically but Vertafore has some really big players in healthcare onboard. The fund is in Texas, software development in Seattle, and their partners are in Asia. They will be acquiring other platforms to eliminate the competition and acquire core development based on the CFO they hired about a year ago, whose expertise is in building through acquisition and world domination.

Not sure that is what you are after, but I took a shot.

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