The most accurate Fintech tool for valuation of start-ups, based on artificial intelligence

Informations projet

FAIR VALUE

N° de convention de subvention: 827583

DOI

10.3030/827583

Projet clôturé

Date de signature de la CE 17 Juillet 2018

Date de début 1 Août 2018

Date de fin 31 Decembre 2018

Financé au titre de

• INDUSTRIAL LEADERSHIP - Innovation In SMEs

Coût total

€ 71 429,00

Contribution de l’UE

€ 50 000,00

Coordonné par

FELLOW FUNDERS PFP SA
Spain

Periodic Reporting for period 1 - FAIR VALUE (The most accurate Fintech tool for valuation of start-ups, based on artificial intelligence)

Période du rapport: 2018-08-01 au 2018-12-31

Résumé du contexte et des objectifs généraux du projet

FAIR VALUE is a 100% online Fintech tool to help entrepreneurs and investors in the impartial and accurate business valuation, as well as in determining risks and estimate the readiness of their new business project to access financing. FAIR VALUE uses proprietary algorithms for risk analysis and business valuation, which incorporate for the first-time artificial intelligence for the complex task to correctly value start-up businesses. In this sense, our algorithms are equipped with machine learning techniques for the automatic adjustment of our algorithms to different sectors, market conditions and risk evolution. Thanks to this, we can generate a reliable forecast of start-ups pricing at different points and under different critical pathways, based not just on financial forecasts, but on updated data of market sectors, countries and risk factors.

WHAT WERE THE PHASE 1 OBJECTIVES? The Phase 1 project was planned to perform an in-depth feasibility study, before accomplishing the last stage of technology development and market launch for FAIR VALUE. Essentially, this Phase 1 project was aimed to minimize risks (technical, commercial and financial risks) before undergoing the next stage of the project to enter the market.

Travail effectué depuis le début du projet jusqu’à la fin de la période considérée dans le rapport et principaux résultats atteints jusqu’à présent

Below we detail the work activities performed:
- Validation of the market potential of FAIR VALUE.
- In-depth market analysis.
- Definition of plan for IP protection.
- Testing the demo version.
- Definition of a plan for full technology readiness.
- Analysis of risks and definition of a mitigation plan.
- Estimation total funds needed.
- Elaboration of a 3-year business plan.

Progrès au-delà de l’état des connaissances et impact potentiel prévu (y compris l’impact socio-économique et les conséquences sociétales plus larges du projet jusqu’à présent)

It is estimated that 82% of start-ups that fail do so because of cash flow problems, while more than 27% were not able to receive funding. In this panorama, alternative finance providers become essential and the correct company valuation is critical for succeeding in the process of fund raising. However, start-ups are very difficult to value. Unlike valuing companies with revenues, assets and longer track records there is no agreed upon standards for start-ups. Thanks to FAIR VALUE, investors and startups will have a market standard tool for startup valuation which solves all the previously mentioned problems. In addition, FAIR VALUE will enable social benefits such as more job opportunities and the fostering of innovation in our communities.

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