Methodology overview
Startup Scorecard
A Berkus-style qualitative framework for early-stage companies, scoring team, market, traction and moat against a sector benchmark valuation.
How it works
- 1
Start with a benchmark pre-money valuation for comparable early-stage companies in the sector and stage.
- 2
Score the company on four weighted categories, each from 0 to 150% of the sector norm.
- 3
Multiply each score by its weight and sum to get a total multiplier.
- 4
Apply the multiplier to the benchmark valuation.
Worked example
Sample: a seed-stage Indian fintech, 8 months post-launch
Inputs
| Sector benchmark (seed, India) | ₹12,00,00,000 |
| Team | Second-time founders, ex-bank product leads |
| Market | ₹4,000 crore addressable, growing 20% a year |
| Traction | ₹18,00,000 MRR, 6% monthly growth |
| Moat | Proprietary underwriting data, no patents |
Step-by-step calculation
| Step | Formula | Result |
|---|---|---|
| Team (weight 30%) | 130% × 0.30 | 0.390 |
| Market (weight 25%) | 115% × 0.25 | 0.288 |
| Traction (weight 30%) | 120% × 0.30 | 0.360 |
| Moat (weight 15%) | 90% × 0.15 | 0.135 |
| Total multiplier | 0.390 + 0.288 + 0.360 + 0.135 | 1.173× |
| Scorecard valuation | 12,00,00,000 × 1.173 | ₹14,07,60,000 |
Valuation from this method alone
₹14,07,60,000
Scorecard outputs are ranges, not points. Treat ₹14 crore as the centre of a ₹12–17 crore negotiating band.
Most reliable when
- Pre-revenue and seed-stage companies where cash flow methods cannot apply.
- Framing a funding conversation around what actually drives early-stage value.
- Comparing several early-stage companies on a consistent basis.
Weaker when
- Entirely dependent on the benchmark valuation chosen, which varies widely by market cycle.
- Scores are subjective — founders and investors rarely agree on them.
- Not credible for profitable or growth-stage businesses, where earnings methods dominate.
See what your business is worth
Valuenomic runs this method alongside five others and weights the results.