Bizdaq, a Leeds, UK-based online platform for business owners to buy and sell small and medium-sized businesses, raised £1m in funding.
Backers included British high street entrepreneur Tim Whitworth, co-founder and former chief executive of clothing chain Republic.
The company intends to use the funds to to grow over the coming months and launch a nationwide marketing campaign.
Founded by Sean Mallon, an experienced business sales broker who has supported more than 1,200 everyday entrepreneurs in realizing value from their work, Bizdaq has launched its service at www.bizdaq.co.uk, with the goal of allowing small and medium sized businesses to capitalize on Britain’s economic growth. It tries to disrupt the traditional brokerage industry which ties business owners in to strict 12-month contracts, is often too slow to act and charges sellers up to 15% of their sale fee (a typical business transfer agent may take a commission of up to £15,000 on a business sold for £100,000).
The company expects most of its subscribers will only ever pay an average of £500 to find a buyer and complete the sale, saving in agents’ fees.
The platform include an online valuation tool that 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. Profile listings for members’ businesses are also syndicated to up to 20 for-sale directories.