Scoring Methodology for Startups

Part
01
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Part
01

Scoring Methodology for Startups (Part 1)

Some examples of methodologies and frameworks for scoring/assessing startups include Deconstructing VCs Decision Making Frameworks, Scorecard Valuation Methodology, Venture Capital Valuation Method, and Dave Berkus Method.

Deconstructing VCs Decision Making Frameworks


Frameworks Scoring/Assessment Illustration

Scorecard Valuation Methodology


Frameworks Scoring/Assessment Illustration

Venture Capital Valuation Method


Frameworks Scoring/Assessment Illustration

Dave Berkus Method


Frameworks Scoring/Assessment Illustration


Part
02
of two
Part
02

Scoring Methodology for Startups (Part 2)

Some examples of methodologies and frameworks for scoring or assessing startups include The Risk-Factor Summation Method, Seraf Method, Mosaic Valuation Method, and The Pitch Checklist.

Seraf Method


Frameworks Scoring/Assessment Illustration
  • Buy the Team - This factor considers the team quality beyond its knowledge and experience.
  • Buy the Technology - This factor considers if the firm has some Intellectual Property (IP) attached to the team knowledge and experience.
  • Buy the Feature - This considers the firms' technology has any proven capability, that has achieved limited market acceptance.
  • Buy the Product - This factor considers if the product has broken into the market and is close to the product/market fit.
  • Buy the Business - This considers if the firm has achieved a profitable individual product or a network of closely-related products.

The Risk-Factor Summation Method


Frameworks Scoring/Assessment Illustration

Mosaic Valuation Method


Frameworks Scoring/Assessment Illustration

The Decision Analysis Framework


Frameworks Scoring/Assessment Illustration
  • Market Risk - This aspect focuses on the size of the product's potential market size, the product industry trends, and its ability to retain customers.
  • Product Risk - This factor looks at the technology, quality of the product, and its ability to succeed in the industry.
  • Team Risk - This factor considers the strength of the management team and their ability to make the right decisions for the product.
  • Financial Risk - This is the ability of the product and firm to remain valuable and not go bankrupt.


Sources
Sources