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This New Platform Aims To Automate Early Stage Valuation For Startups

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Sep 2, 2015

Pujee is a platform that lets you prepare early stage financials on the go and do your valuation painlessly for your fund raising needs. Bangladesh startup space is still getting started. Many things are happening in the eco-system. New venture capital firms are entering into the market. We have just got a new Venture Capital act and more.

While equity financing is yet to become a common phenomenon, we don’t have peripheral support services for fund raising as well. Consequently, technical know-how of financing and fund raising often becomes a burden for early stage companies. This is where Pujee comes in.

Pujee, as a self-serving early stage financial platform, helps you to prepare your financials by using its valuation engine.

Supported by EMK Center, and developed by LightCastle Partners, Pujee does not want to restrict its service only in Bangladesh and aims to become a platform for whole region over the time.

Pujee, as a self-serving early stage financial platform, helps you to prepare your financials by using its valuation engine.

Digging Deep
Finance is important for starting any business. However, conventional approach to finance in Bangladesh is bank loan or debt. But the problem is banks are only lenders they are not partners. On the contrary, there is equity financing which is prevalent in other countries as an early stage funding option. Fortunately, there is a sharp surge in equity financing ecosystem in Bangladesh as well. Recently government has approved a venture capital act and there are local and international VC firms in the market. The idea of angel investment is also becoming popular. This makes whole scenario more interesting for startups.

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However, there are other issues around. When you are talking about equity financing, you need your financials and valuations. For most startups this is difficult and hiring someone for doing valuation is expensive as well. Pujee aims to solve this problem by offering a free valuation tool geared towards both business and non-business background entrepreneurs.

Practical
You can do two things by using Pujee platform now: you can learn about fund raising and early stage valuation by using their existing resources which is insufficient at this stage. Over the time, the amount of resources will increase as Pujee team adds more resources.

Then you can prepare your financials by using Pujee valuation engine. To do that, you have to create an account and log in to the system. Once you are logged in it will show you an assumption worksheet which is basically a form. Once you input all required data into the form it will give you your financials as output that you can download and show to your investors.

The second limitation is applicable for almost all automatic systems: scale, accuracy, and no one size fit. You cannot scale it and there should be no one size fit for all valuation.

However, Pujee has two limitations. The form still looks pretty intimidating! For many non-business background entrepreneurs it would take time to understand the assumption sheet itself and then use it. One thing Pujee can do to help is: it can organize workshops on using its platform.

The second limitation is applicable for almost all automatic systems: scale, accuracy, and no one size fit. You cannot scale it and there should be no one size fit for all valuation. In that case it would be difficult to make Pujee output/valuation as a serious valuation that investors would consider seriously. However, Pujee can add more human involvement to the system and can start a certification process by getting into collaboration with VC firms by convicting them to accept Pujee valuation as a standard.


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Omor works as an Intern at FS. He covers events, writes features, and meets entrepreneurs and makers and doers.

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