STARTUP VALUATION REPORT
Raj krishnan
Prepared for: Raj krishnan
Prepared on: 10/07/2024
Our Approach
Valuing a Startup without any existing revenue can be difficult. So difficult in fact that most Venture
Capitalists and Angel Investors admit that a certain degree of subjectivity and experience must be used.
The value of such a company cannot be determined using the traditional methods of financial projections
and quantitative analysis.
To solve the problem many larger Angel investors have developed sophisticated algorithms to come up
with a realistic valuation.
The Scorecard method was devised by Angel Investor Bill Payne (US Angel Investor of the year 2009). He
first published this startup valuation method in his book, The Definitive Guide to Raising Money from
Angles, released in 2011.
The Scorecard method uses a combination of industry data and weighted percentages based on detailed
quantitative analysis to come up with a realistic valuation.
Area Weightage
Team Score 40%
Opportunity Score 20%
Product Score 20%
Competitive Adv Score 10%
Marketing Score 5%
Funding Need Score 5%
Your Current Valuation
$ 1,185,000
Your Valuation in comparison to other Startups
0 – 0.5 M 0.5 – 1 M 1 M – 1.5 M 1.5 M – 2 M 2M+
You Average Startup Average Startup
Submissions in MVP Stage Submissions in all Stages
Team Score : 9.4 Opportunity Score :11.3 Product Scored : 8.5
Competitive Score : 6.5 Marketing Score : 10 Funding Scored : 3.3
The Team Score Score Weight: 40%
Score Comparison:
Team Score : 9.4 0-2 2-4 4-6 6-8 8 - 10
Very Poor Poor Average Good Very Good
You Average Startup Submissions
The management team should be complete and consist of experienced, knowledgeable and
coachable people. A better management team would lead to a higher valuation of your
Startup.
Strengths:
You have a perfect team – hipster, hacker ad hustler.
Your previous experience in business demonstrates your capability to execute your start-up proficiently.
You are willing to learn the Startup rules – this is a value highly appreciated by investors.
You appreciate that the company would need an experienced CEO once it grows, and you would be happy to
step aside, and enjoy the growth.
Areas for Improvement:
You can enhance the strength of your team by adding someone with experience in your startup industry
sector
The Opportunity Score Score Weight: 20%
Score Comparison:
Opportnity strength Score : 11.3 0-2 2-4 4-6 6-8 8 - 10
Very Poor Poor Average Good Very Good
You Average Startup Submissions
The size of the market should be assessed and realistic market share targets should be set. If
the size of the market is too low, it would have a negative impact on your Startup valuation
The Product Score Score Weight: 20%
Score Comparison:
Product strength Score : 8.5 0-2 2-4 4-6 6-8 8 - 10
Very Poor Poor Average Good Very Good
You Average Startup Submissions
The intellectual property (IP) and traction of the company should be well defined. Some
investors put traction (the ability and speed with which you can generate new customers)
ahead of IP when evaluating Startups. If your product has a clear competitive edge and you
can demonstrate the ability to generate traction – you can raise your Startup funding at a
better valuation.
Strengths:
You have identified your product as a Painkiller with no-side effects.
Your Product is unique and protected by trade secrets.
Areas for Improvement:
It is recommended to identify the intellectual property involved in your product and talk to a legal expert
about protecting it. Can you IP protect your business model?
If the barriers to entry are low – then you need to identify a way to sustain competitive advantage in the
market.
The Competition Score Score Weight: 10%
Score Comparison:
Competitive Score : 6.5 0-2 2-4 4-6 6-8 8 - 10
Very Poor Poor Average Good Very Good
You Average Startup Submissions
The competitive environment should also be thoroughly analysed. The barriers to entry,
average operating profits for the industry and the projected growth of the industry should all
be assessed. If the barriers to entry in your market are low, this will have a negative impact on
your Startup valuation.
Strengths:
You don’t have a dominant competitor in the market – it would allow you to establish your Competitive
Advantage and scale easily.
Current Competition in the market is weak.
Areas for Improvement:
You have not identified the type of competitors in the marketplace. Is your market dominated by a single
large player or consists of multiple small players?
The Marketing Score Score Weight: 5%
Score Comparison:
Marketing Score : 10 0-2 2-4 4-6 6-8 8 - 10
Very Poor Poor Average Good Very Good
You Average Startup Submissions
The company should have detailed marketing plans along with identified sales channels and
partnerships which can be leveraged to create new business. If you can demonstrate that you
have already worked out your sales channels and developed relevant partnerships – you can
increase your valuation by 10%.
Strengths:
You have identified Key Marketing Partners and have a clear go-to-market strategy.
The Funding Score Score Weight: 5%
Score Comparison:
Funding Score : 3.3 0-2 2-4 4-6 6-8 8 - 10
Very Poor Poor Average Good Very Good
You Average Startup Submissions
Will the company require any additional investment from Angel investors or Venture
Capitalists? If yes, this should be assessed and the amounts required should be factored into
the valuation. The money you raise should be able to take you to the next round.
