Scorecard Valu

The Scorecard Valuation Method is a popular approach used by investo

to assess a startup's worth before any funding has been received, wh
comparing the startup to similar startups, investors can better unders
decisi

When using the Scorecard Valuation Method, investors typically loo

potential in the same industry. Adjustments are then made to arrive
startup's development, revenue, mark

The valuation arrived at through this method is considered a pre-mon

valuation is important for both investors and startups, as it provides
deal. Ultimately, the Scorecard Valuation Method can help startups
succe
corecard Valuation Method
ach used by investors to determine the value of a startup. This technique allows investors
s been received, which can help negotiate deals with potential investors. In addition, by
rs can better understand its potential for success and make more informed investment
decisions.

vestors typically look for comparable startups with similar characteristics and growth
hen made to arrive at a benchmark value, considering factors such as the stage of the
ment, revenue, market size, and competitive landscape.

nsidered a pre-money valuation, as it is determined before any funding is received. This

ups, as it provides a basis for negotiations and can impact the terms of the investment
d can help startups to attract investors and secure the funding they need to grow and
succeed.
Gather Valuations for other pre-revenue companies in your sector within your
geographic region ("Comparables")

Comparable Companies Valuation

Company A $ 1,000,000
Company B $ 2,600,000
Company C $ 1,650,000
Company D $ 2,300,000
Company E $ 3,000,000
Company F
Company G
Company H

Average of Comparable Companies $ 2,110,000

Compare your target companies to similar deals

done in your area using the following factors:

Value Driver Weight

Board, entrepreneur, the management team 30%
Size of opportunity 25%
Technology/Product 15%
Competitive Environment 10%
Marketing/Sales 10%
Need for additional financing 5%
Others 5%
Sum of Factor

Pre Money Valuation

 Company 1 Company 2
Board, entrepreneur, the management team $ 949,500 $ 1,012,800
Size of opportunity $ 633,000 $ 896,750
Technology/Product $ 316,500 $ 253,200
Competitive Environment $ 147,700 $ 158,250
Marketing/Sales $ 189,900 $ 295,400
Need for additional financing $ 73,850 $ 68,575
Others $ 79,125 $ 116,050
 Scorecard Valuation Method
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$- t t
m ni
ty uc en es ng er
s
ea d m al ci th
t rtu ro n S an
nt po /P i ro g/ in
O
e
gy in lf
em op o nv et a
ag of ol E
ar
k
on
e hn ve i ti
an iz c t i ti M d
m S Te pe ad
he fo
r
,t om
e ur C
ee
d
en N
pr
tre
en
d,
o ar
B

Company 1 Company 2 Company 3

Target Company 1 Target Company 2 Target Company 3

Venture Score Factor Venture Score Factor Venture Score

150% 0.45 160% 0.48 140%
120% 0.30 170% 0.43 160%
100% 0.15 80% 0.12 105%
70% 0.07 75% 0.08 95%
90% 0.09 140% 0.14 80%
70% 0.03 65% 0.03 65%
75% 0.04 110% 0.06 130%
1.13 1.33

$ 2,389,575 $ 2,801,025
Company 3
$ 886,200
$ 844,000
$ 332,325
$ 200,450
$ 168,800
$ 68,575
$ 137,150
 ng er
s
ci th
an O

Target Company 3

Factor
0.42
0.40
0.16
0.10
0.08
0.03
0.07
1.25

$ 2,637,500