skip to Main Content

Scorecard Valuation Method

What is the Scorecard Valuation Method?

The Scorecard Method is a valuation method based on a weighted average value adjusted for a similar company.

How does it work

The scorecard method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target.

Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures.

Scorecard Method tool by key2investors

The scorecard method tool let’s you assign weights to different factors that you can compare to other companies from your industry and region.

The valuation goes up or down depending on your assessment of how your startup is doing in the 7 risk areas and the relative weighting you give the risks.

Work on your risks and how to cover them to improve your valuation. Challenge this with the VC method, the Transaction Multiples Method and the RFS.

A more in-depth reference on this method can be found at Bill Payne‘s website.

When to use it

Use this method if your company is pre-revenue and early stage and you are looking for growth financing.

Back To Top

In order to continuously improve our website we are using cookies. By continuing to use the site, you agree to the use of cookies. For more information on cookies please consult our data privacy policy. Please click “I accept” to continue. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close