Bizdaq launches online platform that makes it easier to buy and sell a tech startup
The service - founded by Leeds-based business sales broker Sean Mallon - aims to help serial entrepreneurs get a good deal when they want to sell their business and move onto their next venture.
"Many startup founders grow their businesses to a certain point, then want to start all over again with a fresh idea," Mallon told Techworld. "Bizdaq's SaaS [software-as-a-service] model offers the potential to knock thousands off of typical business transfer or advisory fees, so it makes sense for startups to use us much as possible through the sale of their previous venture if it's a viable, working business model.
While a typical business transfer agent may take a commission of up to £15,000 on a business sold for £100,000, Bizdaq expects most of its subscribers will only ever pay an average of £500 to find a buyer and complete the sale, saving thousands in agents' fees.
"When hard-working business owners decide to sell up, brokerages can help them find a buyer," said Mallon. "But traditional brokerages that tie business owners into strict 12-month contracts are often too slow to act and charge sellers up to 15 percent of their sale fee.
"By launching as a monthly subscription online service, Bizdaq gives business owners the flexibility and price point to sell on with far lower outlay, or even to change their mind without having sunk unnecessary cost. It's about giving small businesses the tools needed to complete their sale as well as giving them choice. We want to give them more freedom to choose the option better suited to their needs."
Bizdaq features include an online valuation tool that instantly estimates the likely sale value of any business, step-by-step instructions and notifications to help business sellers and buyers through the process for themselves.
The platform could be used to sell tech startups onto large corporates like Google and Facebook. However, Bizdaq said not all startups necessarily want to go for a big IPO or want to sell to a large company.
Many tech startup owners want to sell their business on to another SME and start a new venture while the company is still in its infancy.
Funding
The new company has raised £1 million in financing, mostly as venture funding from British high street entrepreneur Tim Whitworth, co-founder and former chief executive of clothing chain Republic.
Bizdaq said it will use the funding to drive growth over the coming months and will allow for a nationwide marketing campaign following today's launch.