Scorecard Evaluation Methodology

This methodology has become popular among angel investors in determining the valuation of pre-revenue startups.

by Bill Payne
Business executive, entrepreneur and Angel InvestorFollow 10

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Description
There is no single pre-money valuation method for pre-revenue startups that is particularly effective at such an early stage. Therefore, investors use a number of methodologies to determine the correct pre-money valuation method. A critical factor in determining the amount of ownership an investor purchases from the entrepreneur is the valuation at the time of investment. This methodology is just one of many that determines the valuation at the time of investment. It is highly advised to use multiple methods, and use the weighted average.

This particular method has proven to be very popular among angel investors in determining the pre-money valuation of pre-revenue startup businesses.

This Best Practice includes
1 Scorecard Valuation Methodology pdf