---
title: "What Is Scorecard Valuation?"
term: "Scorecard Valuation"
description: "Scorecard valuation is an angel method that adjusts a regional average pre-money valuation up or down based on weighted factors — team, market, product, competition, and traction."
date: 2026-07-25T00:00:00.000Z
updated: 2026-07-25T00:00:00.000Z
topics: ["venture-capital"]
source: https://venturecapitaltracker.com/glossary/scorecard-valuation
---

# What Is Scorecard Valuation?

> Scorecard valuation is an angel method that adjusts a regional average pre-money valuation up or down based on weighted factors — team, market, product, competition, and traction.

**Scorecard valuation** is a pre-revenue pricing approach that scales a regional benchmark pre-money by percentage adjustments for key company attributes.

### How it works

Start with **average pre-money** for stage and region (e.g., $4M seed software). Assign weights: team 30%, market 25%, product 15%, competition 10%, etc.

Score each factor above or below average → apply +/- percentages to baseline. Strong team (+20% on 30% weight) and weak competition (-10% on 10% weight) net to a suggested $4.8M pre-money.

Similar to [risk factor summation](/glossary/risk-factor-summation) but uses **percentage multipliers** on categories rather than fixed dollar steps per risk line. [Berkus method](/glossary/berkus-method) instead adds dollar values for milestones.

Angel groups use scorecards to align syndicate members before issuing [SAFEs](/glossary/safe). Institutional leads rarely price solely via scorecard once metrics exist.

### Why it matters

- **Founders:** Prepare evidence for each weighted bucket — team bios, LOIs, prototype demos — not just TAM slides.
- **Investors:** Document assumptions when leading pre-seed on scorecard logic for co-investor transparency.

### Common mistake

Presenting scorecard output as 409A or binding valuation. It is a negotiation anchor for illiquid early deals, not fair market value for tax purposes.

### Related ideas

See also [risk factor summation](/glossary/risk-factor-summation), [Berkus method](/glossary/berkus-method), [pre-money valuation](/glossary/pre-money-valuation), and [409A valuation](/glossary/409a-valuation).

### Related ideas

Full guide: [What is the scorecard valuation method?](/scorecard-valuation-method-startups).

## FAQ

### What is scorecard valuation in simple terms?

Scorecard valuation compares your startup to typical local deals, then multiplies the baseline up or down based on weighted scores for team strength, market size, product progress, and other factors to suggest a pre-money range.

### Why does scorecard valuation matter?

For founders, it explains angel pre-money logic without revenue multiples. For investors, it standardizes group discussions — but competitive rounds still set price via term sheets, not spreadsheets alone.


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Source: https://venturecapitaltracker.com/glossary/scorecard-valuation