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