How It Works
The Scorecard Method, developed by Bill Payne, compares a pre-revenue startup to similar funded companies in the region. Seven factors are weighted and scored, producing a target valuation that reflects the startup's specific strengths and weaknesses.
Formula: $$V = V_{avg} \times \sum_{i=1}^{7} w_i \times s_i$$ where $$\sum w_i = 1$$.
The 7 Factors
Team (30%)
Founders' experience, track record, domain expertise, and ability to execute.
Product/Technology (25%)
Product maturity, IP protection, technical differentiation, and defensibility.
Market Size & Growth (15%)
Addressable market size, growth rate, and market timing.
Competitive Environment (10%)
Number and strength of competitors, barriers to entry, and differentiation.
Marketing/Sales (10%)
Go-to-market strategy, sales channels, and customer acquisition plan.
Funding Need (5%)
Future capital requirements and dilution risk.
Other Factors (5%)
Legal, regulatory, or other considerations specific to the startup.
Interactive Calculator
Enter your startup's scores (1.0 = average, >1.0 = above average). Uses Rust/WASM for instant client-side computation.