WO2018207011A1

WO2018207011A1 - System and method for valuating a venture

Info

Publication number: WO2018207011A1
Application number: PCT/IB2017/057374
Authority: WO
Inventors: Srinivasulu Reddy Guvvala
Original assignee: Srinivasulu Reddy Guvvala
Priority date: 2017-05-08
Filing date: 2017-11-24
Publication date: 2018-11-15

Abstract

A system (100) and a method for valuating a venture is provided. The system (100) is configured to receive information corresponding to a venture for which funding is sought. The system (100) further receives input indicating valuation of the venture from a plurality of entities. The input indicating the valuation of the venture is based on perception of the plurality of investors. The system (100) is configured to determine a valuation of the venture, wherein the valuation is at least one of arithmetic mean, median, mode, geometric mean and harmonic mean of the inputs indicating the valuation received from the plurality of entities.

Description

SYSTEM AND METHOD FOR VALUATING A VENTURE

BACKGROUND

[001] Unless otherwise indicated herein, the materials described in this section are not prior art to the claims in this application and are not admitted to be prior art by inclusion in this section.

FIELD

[002] The subject matter in general relates to acquiring funds for business. More particularly, but not exclusively, the subject matter is directed to crowd funding or crowd investment for a venture.

Discussion of related art

[003] Entrepreneurs are full of ideas and strategic ways to implement those ideas. However, starting a new business requires significant investment.

Acquiring sufficient funds to kick start the business is always a challenge. Early stage investors may generally seek relatively more stake for small investment considering the risks involved.

[004] The traditional process of acquiring funds for business from investors includes pitching to an investor to raise required funds, and the investor making the decision on whether to invest in the business. Both entrepreneurs and investors may by way of negotiation arrive at a final investment and a share of stake to be owned by the investors based on the sum of money the investor would be investing in the business.

[005] Gathering funds requires hours of explaining business plans to several investors one after another. Many a times, the investors may not even be interested in making an investment, considering the risk involved. The

entrepreneurs visit and meet with several investors one after another explaining the plan, hoping one would be interested enough to invest. This process may often take months or years and yield disappointing results.

[006] A supplemental process, generally referred to as equity crowd funding, has emerged in the recent past that addresses the aforementioned problem. Crowd funding platforms enable entrepreneurs to present their business ideas, projects, or product/service over the internet to a large audience of potential investors. Crowd funding is aimed at attracting small amounts of investment directly from a mass of interested individuals. Crowd funding provides benefits such as centralizing the fundraising efforts, funneling all prospects and potential investors by building a single and comprehensive profile and eliminating the need to pursue each investor individually. Crowd funding is expected to continue in popularity with the rapid growth in global ecommerce in the last few years.

[007] However, the aspect of valuating a business or a venture based on investors' knowledge, understanding and perception seems to be absent in almost all crowd investment processes or crowd investment portals. The conventional techniques fail to determine the valuation of a venture by considering offers received from the investors. Further, the aspect of receiving counter offers indicating a percentage of stake sought in the venture by investors seems to be absent in the conventional crowd investment processes or crowd investment portals. Conventional portals for crowd funding are developed assuming that the stake offer proposed by the entrepreneur is fair enough for anybody who invests in it, as they have complete understanding of the risk and valuation of the venture. This leads to either lack of enthusiasm from the crowd investors or them picking up stakes at higher cost and higher risks.

[008] In light of the foregoing discussion, there is need for an improved platform for valuating a venture based on inputs received from entrepreneurs as well as investors.

SUMMARY

[009] An embodiment provides a system for valuating a venture. The system is configured to receive information corresponding to a venture for which funding is sought. The system receives input indicating valuation of the venture from a plurality of entities. The input indicating the valuation of the venture is based on the perception, research and understanding of the market and the venture by the plurality of entities. The system is configured to determine valuation of the venture, wherein the valuation is at least one of arithmetic mean, median, mode, geometric mean and harmonic mean of the inputs indicating the valuation received from the plurality of entities.

[0010] Another embodiment provides a system for valuating a venture. The system comprises a portal configured to receive indication of a quantum of fund sought for a venture. The system receives offers from a plurality of entities in response to the fund sought. Each of the offers comprises at least a valuation of the venture. Further, each offer comprises an investment committed against each valuation. The system is further configured to present offers categorized in groups, wherein groups are formed based on the valuation of the venture in each of the offers. Additionally, groups may also be formed based on nature of venture or other criteria.

[0011] Yet another embodiment provides a method for valuating a venture. The method comprises receiving information corresponding to a venture for which funding is sought. The method further comprises receiving input indicating valuation of the venture from a plurality of entities and determining a valuation of the venture based on the inputs corresponding to the valuation received from the plurality of entities.

BRIEF DESCRIPTION OF THE DRAWINGS

[001] Embodiments are illustrated by way of example and not limitation in the Figures of the accompanying drawings, in which like references indicate similar elements and in which:

[002] FIG. 1 is block diagram of an exemplary architecture of an exemplary system 100 for facilitating crowd investment;

[003] FIG. 2 is a flowchart illustrating the steps for facilitating crowd investment;

[004] FIG. 3A is an illustration of the system 100 receiving information corresponding to the venture for which fund is sought and input indicating valuation of the venture from a plurality of investors;

[005] FIG. 3B is an illustration of a portal 302 displaying information corresponding to a venture for which funding is sought and information corresponding to entities initiating the venture;

[006] FIG. 3C is an illustration of an exemplary questionnaire presented to the investors to be answered based on which the valuation is determined;

[007] FIG. 3D is an illustration of an alternative of the questionnaire of FIG. 3C, presented to the investors to receive information corresponding to valuation and investment committed;

[008] FIG. 4 is a flowchart illustrating the steps carried out by system 100 while arriving at a valuation and a percentage of share the entity interested in funding will own; and

[009] FIG. 5 is a graphical representation of valuation of the venture against number of investors.

DETAILED DESCRIPTION

I. OVERVIEW

II. SYSTEM MODULES

III. SYSTEM AND METHOD FOR FACILITATING CROWD

INVESTMENT

IV. CONCLUSION

[0010] The following detailed description includes references to the accompanying drawings, which form part of the detailed description. The drawings show illustrations in accordance with example embodiments. These example embodiments are described in enough detail to enable those skilled in the art to practice the present subject matter. However, it will be apparent to one of ordinary skill in the art that the present invention may be practiced without these specific details. In other instances, well-known methods, procedures and components have not been described in detail so as not to unnecessarily obscure aspects of the embodiments. The embodiments can be combined, other embodiments can be utilized or structural and logical changes can be made without departing from the scope of the invention. The following detailed description is, therefore, not to be taken as a limiting sense.

[0011] In this document, the terms "a" or "an" are used, as is common in patent documents, to include one or more than one. In this document, the term "or" is used to refer to a nonexclusive "or," such that "A or B" includes "A but not B," "B but not A," and "A and B," unless otherwise indicated.

I. OVERVIEW

[0012] Embodiments provide a system and a method for valuating a venture. The system receives information corresponding to the venture, which is seeking funds needs to be evaluated. The valuation of the venture is determined by the system based on inputs indicating valuations received from entities and individual investors interested in funding the venture. The system is configured to present a plurality of questions to the investors, wherein each question may be directed at valuation of the venture. The system receives input corresponding to valuation from investors in the form of answers to the questions presented. The answers may be based on the perception, extensive research and knowledge that the investors might have about the venture and the market. The system is configured to determine the valuation of the venture based on inputs received from the investors considering several factors that are likely to influence the valuation.

[0013] In an embodiment, the arithmetic mean of all valuation offers received from investors may be considered as the valuation of the venture. In another embodiment, the valuation may be one of median or mode.

[0014] In another embodiment, standard deviation, variance, cumulative distribution function among others can be used to calculate alternative valuations.

[0015] In yet another embodiment, investors whose valuation is within a predetermined deviation can be considered for investment. Additionally, a predetermined no. of investors that are close to the computed valuation can be considered for investment.

[0016] The system includes a portal, wherein the portal is configured to display information corresponding to the venture for which funding is sought. The portal further optionally presents at least one target corresponding to the funding sought. Target may include a valuation presented by an entity seeking the funding. Alternatively, target may include the valuation determined by the system from the inputs received from the plurality of entities. [0017] Additional information corresponding to the entity seeking the funding, may be presented by the portal. Such information may include, but not limited to, the entity's background, experience in the market, where the entity is located and where the entity desires to start the venture that is being proposed, where the entity desires to operate from, who would be the targeted market of the venture that is being proposed and personal information related to one or more promoters or executives of the venture, such as age and experience, among others.

[0018] The system is further configured to receive offers from a plurality of entities who are interested in funding the entity seeking the funding. Each of the offers comprises at least a valuation of the venture. Further, each offer comprises an investment committed against each valuation.

II. SYSTEM MODULES

[0019] Referring to the figures, more particularly to FIG. 1, an exemplary architecture of an exemplary system 100 for valuating a venture is provided. In this section, the system components/modules are discussed in brief. Detailed discussion of appropriate components/modules is included in the subsequent sections.

[0020] The system 100 includes a processing module 102, memory units/devices 104 and a user interface 106. The system 100 may further include combination of modules in addition to the processing module 102, memory units/devices 104 and the user interface 106. The system 100 may further include a communication module 108. Additional modules may be optionally required in enhancing performance of the system 100 while carrying out the function intended towards valuating the venture. Additional modules may include, but not limited to, special purpose processor modules, graphics modules, audio and video output modules, additional storage modules and ports to receive peripheral devices, among others.

[0021] Processing module 102, also referred to as processor 102, returns output by accepting signals, such as electrical signals as input. In one

embodiment, the system 100 may include one or more processing units (CPUs). The processor(s) 102 may enable communication of system 100 with other systems via network communication modules 108. The processor 102 may be implemented as appropriate in hardware, computer-executable instructions, firmware, or combinations thereof. Computer-executable instruction or firmware implementations of the processor 102 may include computer-executable or machine-executable instructions written in any suitable programming language to perform the various functions described.

[0022] The memory units/devices 104 may store data and program

instructions that are loadable and executable on processor 102 as well as data generated during the execution of these programs. The memory may be volatile, such as random access memory and/or a disk drive or non- volatile memory.

[0023] The memory units/devices 104 may store a database 110 that includes information corresponding to a venture for which funding is sought. Database 110 may further include information corresponding to an entity that seeks the funding. The database 110 may store the original offer (target) seeking investment. Further, database 110 includes information corresponding to valuation received from investors and investments committed by investors against the valuation. All proposals and the original offer (target) may be stored in blockchains.

[0024] Database 110 further includes a plurality of questions. The questions are displayed to the investors or the entities interested in funding the venture. The questions may be directed at estimating the valuation of the venture.

[0025] The database 110 may alternatively be deployed in a cloud server. The database 110 may further be present in another system remotely located from system 100 and system 100 may communicate with the other system comprising database 110 through communication networks/modules 108.

[0026] The user interface 106 may be an input-output device. User interface 106 may be configured to receive input. The user interface 106 may be a screen of a computer or a kiosk. The user interface 106 may be a touch enabled interface. The user interface 106 may be configured to receive input through other peripheral input devices, such as, keyboard, microphone, and camera, among others. The user interface 106 may be configured to display information as output. III. SYSTEM AND METHOD FOR VALUATING A VENTURE [0027] In this section, the detailed functions of each of the modules, described in the previous section, towards the intended function of valuating the venture will be elaborated. Each of the modules may, independently or in combination with other modules of system 100, enable a portal to be run on system 100 to valuate a venture.

[0028] Referring to FIG. 2, the system 100 is configured to perform steps towards valuating the venture. A method 200 including one or more steps for evaluating the venture will be described in the following embodiments.

[0029] At step 202, the system 100 receives input corresponding to a venture from an entity seeking funding. Input may be received as information

corresponding to the venture and information corresponding to one or more promoters or executives of the venture. Information may further pertain to an entity or a group of entities initiating the venture. At step 204, a target investment (original offer) desired by entity seeking funding for the venture may be presented on a portal 302 (refer FIG. 3). In another embodiment, step 204 may be optional. At step 206, the system 100 receives input indicating valuation offers from a plurality of entities. Valuation offers may be provided by entities considering various factors including market risks among others from a plurality of entities (potential investors). The system 100 allows investors to provide input indicating valuation of the venture through portal 302, by presenting a set of questions, to which the investors provide answers. Each question is directed at the investors' idea or perception about the valuation of the venture.

[0030] At step 208, the system 100 determines the valuation of the venture. The valuation of the venture may be determined from the valuation offers received from the investors. The system 100 is configured to calculate the arithmetic mean of all inputs received from the investors, wherein the arithmetic mean of two or more valuation offers represents the valuation of the venture. The final valuation is at least the arithmetic mean of all valuation offers received from the investors. Alternatively, the final valuation is at least the arithmetic mean of two or more valuation offers received from the investors.

[0031] The system 100 is configured to calculate one or more of the mode, median, standard deviation, variance, cumulative distribution, among others, of all valuation offers received from the investors. The system 100 is further configured to calculate one or more of the mode, median, standard deviation, variance, cumulative distribution, among others, of two or more valuation offers received from the investors. The final valuation can be at least one of the mode or median of all valuation offers received from the investors. The system can additionally use standard deviation, cumulative distribution function and variance to arrive at a valuation or establish criterion to determine potential investors whom the system can allow to invest.

[0032] At step 210, the system 100 further receives offers, indicating an investment committed against the computed valuation.

[0033] Referring to FIGs. 3A and 3B, the system 100 includes a portal 302. The portal 302 is displayed on the user interface 106 of the system 100. The system 100 may include application software and hardware of desired capabilities that enable the portal 302 to run on the system 100. The portal 302 may be a series of webpages or a website that enables users to provide inputs and receive output. The portal 302 may be created by a series of computer executable codes or instructions present on a cloud server. Users, e.g. the entity seeking the funding and the entity interested in funding, may provide input into the system 100 through the portal 302.

[0034] In another embodiment, the portal 302 may also be a mobile application.

[0035] Referring to step 202, system 100 is configured to receive information corresponding to a venture for which funding is sought. Information

corresponding to the venture may include an overview of the venture, aims and targets of the venture, benefits from the venture and target audience of the venture, among others. The venture may be an initiative of one person or a group of people who may be promoters or executives of the venture. The venture may further be an initiative of an entity such as a startup or a small entity. Information may also include the size of the venture (size in terms of no. of people driving the venture). [0036] Information corresponding to the promoters or executives of the venture may be received by system 100. Information corresponding to the promoters or executives of the venture may include his/their background including education and professional experience. Personal details such as the promoter's places of origin, age, hobbies, and interests, among others, may be displayed as associated information. Information such as how many ventures were initiated by one or more of the promoters, before the proposed venture, how successful were the previous ventures, how experienced are the executives or the entity in the market and the nature of the venture and its scope in the current and the future market, among other information, may also be displayed.

[0037] Information may further include history and objective of initiating the venture, competing ventures, products or services and desired location(s) of operation of the venture, among others.

[0038] The above-mentioned information received by the system 100 may further be displayed on a single "html" page of the portal 302. Alternatively, the information may be distributed over several "html" pages. Each section of information follows a header to the information. For example, a header that says, "overview of the venture" may be followed by information, such as, what the venture aims at, who would benefit from the venture and who are the promoters or executives of the venture, among others.

[0039] In an embodiment, the information may be displayed such that a portion (e.g. the first sentence of the information including the header) may appear as snippet on a desired page of the portal 302 and the rest of the information may be viewed on the same page or on a pop up page upon selecting or pressing the snippet portion. The texts (header and snippet) of the information may be in motion in a horizontal direction or a vertical direction, at predefined intervals.

[0040] The portal 302 may be further configured to display one or more pages to receive input corresponding to the information described in the previous embodiments. Information corresponding to the venture, the promoters of the venture or the entity initiating the venture may be received from the promoters of the venture. The system 100 may be able to access a portion of the information from sources such as a public data source (hosted on a cloud server). Additionally, portions of the information may be accessed from information available on social networking profiles of the promoters of the venture.

[0041] Information corresponding to the venture and the entity seeking the funding (including the promoters and/or executives) may be stored in the database 110 in the memory unit 104. Database 110 may further store instructions and rules for displaying the information on the portal 302. Database 110 further stores instructions as to how each page may be displayed on the portal 302 and the relationship between multiple pages of the portal 302.

[0042] Portal 302 may enable investors or investing entities to sign up or log in to join the portal 302. An investor who has valid log in credentials may only be able to view the entire information being displayed corresponding to the venture and the entity seeking funding for the venture or the entity initiating the venture. Further, to make an investment, an investor may have to log in to the portal 302 using his/her credentials.

[0043] Referring to step 204, the portal 302 may optionally present at least one target corresponding to the funding. The target may correspond to the quantum of fund the entity seeking the funding wishes to raise. As an example, let us assume that entity X wants to develop a shooting game and is looking for funds. After substantial amount of research, X feels that he needs 10000000 USD, to develop and launch the game. X then puts his proposal on the internet through the portal (302) indicating that the target fund he is seeking is 10000000 USD.

[0044] The potential investors need not agree to the target proposed by the entity seeking the funding, while proposing or committing investment. Likewise, entity seeking the funding and presenting the valuation may disagree or deny the valuation determined by the system 100 based on inputs received from the investors. The system 100 may enable the entity seeking the funding for the venture to accept or decline the valuation determined by the system 100 based on inputs received from the investors.

[0045] Referring to step 206, the system 100 receives input indicating valuation offers from the investors/entities. Inputs received from entities/investors include offers indicating the valuation of the venture in terms of monetary units or worth of shares. The plurality of entities/investors may be entities, individuals and groups of individuals interested in investing in the venture.

[0046] Referring to FIG. 3C, the portal 302 may display a plurality of questions 304 stored in the database 110. The investors may have to provide their answers with respect to each question. In an example, the questions may be "what is the valuation of the venture?", "what would be the worth of one share after 5 years?" and "what is the investment committed against the valuation?" among others.

[0047] Alternatively, or additionally, the inputs from the entity/investor may be received through the portal 302. Referring to FIG. 3D, the portal 302 may display one or more fields on the interface 306 corresponding to the valuation and the investment committed. The investors may have to fill in the fields with appropriate information. In another embodiment, the valuation and the investment committed may be provided by investors through the portal 302 by selecting valuation amount and the investment committed through a drop-down menu.

[0048] The questions may be presented to investors randomly or based on some predefined criteria. Further, customized questions may be presented to investors based on their personal profile which they might have entered into the system 100.

[0049] Referring to FIG. 4, the system 100 carries out steps to arrive at a valuation based on valuations and investments committed against each valuation. Further, the system 100 determines the number of shares that each entity committing to invest towards the determined valuation, will own, at least, based on the number of shares the venture owns and the value of each share. At step 402, the system 100 receives input (valuation offers) indicating valuation of the venture from plurality of entities. At step 404, the system 100 receives input indicating investment committed against the valuation. At step 406, the system 100 determines valuation by calculating arithmetic mean of all valuation offers. In other embodiments, the system 100 may calculate median, mode, geometric mean and harmonic mean among others, of all valuation offers. One or more of the median, mode, geometric mean and harmonic mean may represent the valuation. Further the system can factor one or more of standard deviation, variance, and cumulative distribution function to calculate the valuation. Subsequently, the system 100 displays the valuation. At step 408, the system 100 determines number of shares the venture owns from the input provided by entity seeking the funding. At step 410, the system 100 may calculate number of shares offered to investors of the total the number of shares, the venture owns. At step 412, the system 100 calculates the value of each share. At step 414, the system 100 determines the number of shares for each investor whose investments may be considered by the system 100.

[0050] At step 414, the system 100 may determine the final valuation based on the valuation offers received from the plurality of entities. In another embodiment, the system 100 may calculate arithmetic mean of all valuation offers, which is considered as the valuation of the venture.

[0051] In another embodiment, one or more of the median, mode, geometric mean and harmonic mean may represent the valuation.

[0052] In yet another embodiment, any existing assets and liabilities in the venture may be factored while computing valuation.

[0053] In yet another embodiment authorized share capital can be factored while computing valuation.

[0054] In one embodiment, the system 100 may be configured to consider investments from investors whose valuation is within a predetermined deviation. Further, the system 100 may be configured to consider investments from a predetermined no. of investors whose investments are close to or above the computed valuation. The system 100 may not consider all investments by investors. In an embodiment, the system 100 may allow over investing or oversubscribing. Several criteria can be implemented by the system 100 to disqualify investors from participating.

[0055] Referring to step 208, the system 100 determines valuation of the venture considering the valuation offers received from the plurality of entities. Each of the offers comprises valuation of the venture. The valuation may be in INR, USD, EUR, and GBP, among others. The offer further comprises an investment committed by the entity or investor against the valuation. The investment committed by the entity or investor may be in INR, USD, EUR, and GBP, among others. The system 100 determines the valuation of the venture based on the valuation offers received from the investors. The system 100 is configured to calculate the average or the arithmetic mean of the valuation offers received from the investors. Arithmetic mean is calculated using standard formula.

[0056] Additionally, the system 100 is also configured to calculate the one or more of the standard deviation, median mode, geometric mean and harmonic mean, among others, of the valuation offers received from the investors, to represent the valuation.

[0057] The system 100 determines the shares or a percentage of investment committed by the investors. The system 100 determines how many shares the investment committed is worth and how many shares the investor may own for the investment committed. In an embodiment, the system 100 determines the number of investors within one or more deviations.

[0058] Table 1 below is an example illustrating valuation received from the investors.

10 97.0 60 52.0

11 53.0 61 94.0

12 28.0 62 110.0

13 110.0 63 70.0

14 100.0 64 43.0

15 180.0 65 34.0

16 8.5 66 86.0

17 72.0 67 80.0

18 67.0 68 130.0

19 120.0 69 71.0

20 100.0 70 66.0

21 160.0 71 74.0

22 110.0 72 120.0

23 67.0 73 66.0

24 170.0 74 110.0

25 100.0 75 62.0

26 180.0 76 140.0

27 180.0 77 120.0

28 100.0 78 110.0

29 62.0 79 8.2

30 26.0 80 101.8

31 140.0 81 76.0

32 85.0 82 140.0

33 140.0 83 170.0

34 100.0 84 71.0

35 120.0 85 66.0

36 85.0 86 98.0

37 82.0 87 110.0

38 81.0 88 38.0

39 83.0 89 73.0 40 43.0 90 100.0

41 100.0 91 70.0

42 92.0 92 57.0

43 93.0 93 46.0

44 86.0 94 61.0

45 55.0 95 98.0

46 100.0 96 180.0

47 82.0 97 80.0

48 5.5 98 89.0

49 110.0 99 140.0

50 71.0 100 78.0

Table 1

[0059] Referring to Table 1, the investors may provide the valuation based on factors that are likely to influence the valuation. Referring to Table 1, about 100 investors have randomly provided valuation offers based on their idea and perception about the valuation of the venture. The target set by the entity seeking funding as the valuation of the venture is 5 million USD. The total number of shares of the venture is 10 million. The valuation may be in INR, USD, EUR, and GBP, among others. Let's assume the valuation is in USD. Against each valuation, the investors have committed to investments in USDs. In this example, let' s consider that each investor has committed equal amounts of investment against their valuations.

[0060] In the above example, the arithmetic mean, which is 94.26 may be presented as the valuation of the venture by the system 100. Likewise, in the above example, the standard deviation equals to 38.91, the median equals to 92.50, mode equals to 100, geometric mean equals to 83.39 and harmonic mean equals to 62.52.

[0061] The system 100 further determines the number of shares offered to investors of 10 million shares, which is 1885200 shares. The system further calculates the value of each shares, which is 9.43 [(Arithmetic mean of all valuations * 10 million) / (10 million)].

[0062] The system 100 further determines investment per investor if 90 investors are to be considered for investment, as an example. Investment per investor if 90 investors are to be considered for investment is calculated to be 55,555.56 USD and the number of shares per investor is 5894 shares each worth 9.43 USD. Further, in another example, if investment from 70 investors are to be considered then, the investment per 70 investors would be 71428.57 USD and the number of shares per investor is 7578 shares each worth 9.43 USD.

[0063] The system 100 displays a graphical representation of the valuation against the number of investors. The graphical representation may be on the portal 302. The X-axis of the graph includes the valuation received from investors. The Y-axis of the graph indicates the number of investors. The convergence in the graph may be presented as the valuation of the venture by the system. Investors whose valuation is within a predetermined deviation can be considered for investment. A predetermined no. of investors that are close to the computed valuation can be considered for investment.

[0064] Referring to FIG. 5, the system 100 displays a graphical representation of the valuation against 100 investors in the above example. The X-axis of the graph includes the valuation received from 100 investors. The Y-axis of the graph indicates the number of investors.

[0065] In one embodiment, as shown in the example, each investor may commit equal amount of investment against the valuations. In another

embodiment, the investment committed against each valuation may be decided upon by the investors. In another embodiment, the investment committed against each valuation may be fixed by the system 100 or the entity seeking the funding. In one embodiment, the valuation offer by an investor and the investment committed by the investor may be same.

[0066] The system 100 may receive information indicating desire to invest in multiples of a predefined unit of investment with each offer. In one embodiment, the portal 302 displays a predefined unit of investment and enables selection of multiples of the predefined unit of investment. For example, the unit of investment committed may be USD 500000 by each entity/investor.

[0067] Alternatively, the portal 302 may enable investors to select one or more units of investment committed against the valuation. The portal 302 may enable entities to select figures or values that indicate the unit of investment. For example, on a page of the portal 302, choices to select a unit of investment, for example, USD 10000, USD 200000, USD 50000000, and so on may be provided.

[0068] The portal 302 enables selection of a valuation and investment committed in ranges of e.g. USD 10000000-USD 50000000, and so on.

Additionally, the portal 302 enables selection of the valuation and investment committed against the valuation in increments of a unit, e.g. 100000, such as, 20000000, 21000000, 22000000 and so on.

[0069] Further, the system 100 receives information indicating desire to invest in multiples of a predefined unit of investment with each offer. Entities are provided a choice by the portal 302 to select multiples of units of investment. For example, if the investment committed by one entity is USD 5000000, then the entity may select the unit of investment, for example, 5 units of USD 1000000 or 2 units of USD 2500000 or 1 unit of USD 5000000.

[0070] In an embodiment, the portal 302 may include provisions to display information corresponding to the choice of units of investment and multiples of units of investment as a drop-down menu from which the entities may select the units as per their desire. Alternatively, the portal 302 may allow entities to type in desired units of investments and the multiples of the units of investments.

[0071] In an embodiment, the offers from entities (investors) may be in the form of notifications and may be visible only to the entity seeking the funding. Alternatively, the offers may also be visible to all entities willing to invest.

[0072] In an embodiment, the system 100 may be configured to update the pictorial data as and when new investments are committed from investors until investment is concluded (or till a deadline). The updated pictorial data may be displayed to the investors. However, the investors may not be allowed to alter any portion of the pictorial data.

[0073] In an embodiment, the system 100 may provide options to select a format of the graphical representations discussed earlier. Examples of format include, pie chart, bar charts and line graph, among others.

[0074] In an embodiment, the system 100 is configured to provide access to information indicating the valuation offers in each group only to an entity seeking the funding. The system 100 is further configured to prevent access to information indicating valuation offers in each group to the plurality of entities. However, the pictorial data may be viewed by the entity seeking the funding as well as entities willing to invest in response to the valuation. The pictorial data may display information including number of investing entities in a group or a percentage of investing entities in a group.

[0075] The system 100 may allow the entity seeking the funding to access information corresponding to all investors who have made the investments.

Information that may be accessed may include profiles, personal details, interests, what unit of investment and multiples of units of investment has the investor chosen, among others. The entity seeking the funding may also be able to interact with investors through a chat window presented on the interface of the portal 302, post investment.

[0076] Alternatively, the system 100 is configured to prevent access to personal identification of the plurality of entities, to an entity seeking the fund, at least till investment is concluded.

[0077] In an embodiment, the system 100 is configured to prevent access to all or some of the information to non-entities and general public.

[0078] In an embodiment, the system 100 further enables entities to interact. The system 100 may present a chat interface as a pop up interface. The chat interface may be a live chat interface such that when an investor joins or signs in for investment, the chat interface may pop up and enable the investors to interact with the entity proposing the venture.

XII. CONCLUSION

[0079] Embodiments enable valuation of a venture by a system.

[0080] The disadvantages of crowd funding wherein the owner of the venture only has a say in the stake to be diluted, is overcome by the technique of this disclosure.

[0081] Embodiments enable valuation of a venture by way of collective intelligence.

[0082] The processes described above is described as sequence of steps, this was done solely for the sake of illustration. Accordingly, it is contemplated that some steps may be added, some steps may be omitted, the order of the steps may be re-arranged, or some steps may be performed simultaneously.

[0083] The example embodiments described herein may be implemented in an operating environment comprising software installed on a computer, in hardware, or in a combination of software and hardware.

[0084] Although embodiments have been described with reference to specific example embodiments, it will be evident that various modifications and changes may be made to these embodiments without departing from the broader spirit and scope of the system and method described herein. Accordingly, the specification and drawings are to be regarded in an illustrative rather than a restrictive sense.

[0085] Many alterations and modifications of the present invention will no doubt become apparent to a person of ordinary skill in the art after having read the foregoing description. It is to be understood that the phraseology or terminology employed herein is for the purpose of description and not of limitation. It is to be understood that the description above contains many specifications, these should not be construed as limiting the scope of the invention but as merely providing illustrations of some of the personally preferred embodiments of this invention.

Claims

CLAIMS We Claim:

1. A system (100) for valuating a venture, the system (100) configured to: receive information corresponding to a venture for which funding is sought; receive input indicating valuation of the venture from a plurality of entities, wherein input indicating the valuation of the venture is based on perception, research and understanding of the market and the venture by the plurality of entities; and

determine a valuation of the venture, wherein the valuation is at least one of arithmetic mean, median, mode, geometric mean and harmonic mean of the inputs indicating the valuation received from the plurality of entities.

2. The system (100) of claim 1, wherein at least one of arithmetic mean,

median, mode, geometric mean and harmonic mean of at least two or more of the inputs indicating valuation, represents the valuation of the venture.

3. The system (100) of claim 1, further comprising a portal (302) configured to:

display information corresponding to the venture for which funding is sought;

present at least one target corresponding to the funding; and

receive offers from the plurality of entities in response to at least one of the presented target or the valuation, wherein each of the offers comprises at least a valuation and an investment committed against the valuation.

4. The system (100) of claim 3, wherein the portal (302) is configured to: present a plurality of questions, wherein the questions are directed at valuation of the venture;

enable investors to provide answers to the question, wherein the answers are used for determining the valuation of the venture by the system (100);

receive input indicating valuation offers from the plurality of entities;

receive input indicating investment committed by the plurality of entities; and determine valuation considering inputs received from the plurality of entities.

5. The system (100) of claim 1, wherein the system (100) is further configured to determine a number of shares the investors will own based on the number of shares the venture owns and the value of each share.

6. The system (100) of claim 1, wherein the system (100) is further configured to receive information indicating desire to invest in multiples of a predefined unit of investment with each valuation.

7. The system (100) of claim 1, wherein the system (100) is further configured to graphically represent a valuation against number of investors.

8. The system (100) of claim 1, wherein the system (100) is further configured to prevent access to personal identification of the plurality of entities, to an entity seeking the fund, at least till an investment is concluded.

9. A system (100) for valuating a venture, the system (100) comprising a portal (302) configured to:

receive indication of a quantum of fund sought for a venture;

receive offers from a plurality of entities in response to the fund sought, wherein each of the offers comprises:

at least valuation of the venture; and

investment committed against the valuation by the plurality of entities.

10. A method for valuating a venture, comprising:

receiving information corresponding to a venture for which funding is sought;

receiving input indicating valuation of the venture from a plurality of entities; and

determining a valuation of the venture, wherein the valuation is at least one of arithmetic mean, median, mode, geometric mean and harmonic mean of inputs indicating the valuation received from the plurality of entities.

11. The method of claim 10, further comprising, representing the valuation of the venture, by at least one of arithmetic mean, median, mode, geometric mean and harmonic mean of at least two or more of the inputs indicating valuation, received from the plurality of entities.

12. The method of claim 10, further comprising:

displaying information corresponding to the venture for which funding is sought;

presenting at least one target corresponding to the funding; and

receiving offers from the plurality of entities in response to at one of the presented target or the valuation, wherein each of the offers comprises at least a valuation and an investment committed against the valuation

13. The method of claim 10, further comprising determining a number of shares the investors will own based on the number of shares the venture owns and the value of each share of the venture.

14. The method of claim 10, further comprising receiving information

indicating desire to invest in multiples of a predefined unit of investment with each valuation.

15. The method of claim 10, further comprising graphically representing a

valuation against number of investors.

16. The method of claim 10, further comprising preventing access to personal identification of the plurality of entities, to an entity seeking the fund, at least till an investment is concluded.

Dated this 8^th day of May, 2017

(Digitally signed) Kartik PUTTAIAH Patent agent of the Applicants (IN/PA- 1809)