I have been working on a project with some friends for the better part of 2 years now. It’s centered around the construction industry and automates a tiny portion of an job, saving roughly 12 hours of time for this one particular task. We plan on solving other problems in the future but for right now we automate this one particular task extremely well.

We have no revenue, and our costs are extremely low. We have roughly 25 users but those users equate to roughly $500 million in construction projects. Each use saves roughly $1000 a project, so projected out over a large construction company, an individual company could save roughly $500,000 a year. These numbers are rough, but the research is solid. I currently work in the construction industry and I have good data.

I got a call from someone within the construction company I work for (this is only a side hustle at the moment unfortunately) which has a VC division asking if I would be interested in taking investment or being acquired, which I totally am. He said we would talk soon and was really excited to work with me. I have good reason to believe this individual is not just yanking my chain, based on the conversation we had he’s going to be doing certain things to help roll out the product company wide and is excited to have this software in house instead of paying for it.

Now to my question, how the eff do I value this thing? I’m super into stock investing so I have a good sense of valuations based on income/balance/cash flow, but this thing has no revenue. I can throw some numbers around at how much it could save one company but we haven’t tackled monetization. Any ideas of determining valuation would be extremely helpful.



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