SCORECARD VALUATION METHODOLOGY Establishing the Valuation of Pre-revenue, Start-up Companies

This article was originally written in May 2001 and extensively revised in January 2011. The valuation method described herein was also detailed in my book, the Definitive Guide to Raising Money from Angels (2006). The Ohio TechAngels adapted this valuation methodology in 2008 to meet their needs and named it the Bill Payne Method. I expanded the method in 2010 for use in Valuation of Early Stage Companies, a 1⁄2 day workshop of the Angel Capital Education Foundation, and renamed it the Scorecard Method. Others have referred to this and similar methods as the Benchmark Method.