Scorecard Method
Definition
A valuation methodology for pre-revenue companies that estimates value by comparing the target company against a baseline pre-money valuation for similar companies in the same region and stage, then adjusting that baseline by scoring the target company on defined qualitative factors. Factors typically include team strength, market opportunity, product stage, competitive positioning, and strategic relationships.
Common Misapplication
The most common misapplication is selecting a baseline valuation that reflects current market peaks rather than the historically observable range, then scoring all factors at the maximum adjustment. This produces a valuation at the ceiling of the methodology that is not supportable by the observable factors.
FFI Standard Reference
This term is defined and applied in Book 4, Section 4.6: Early Stage Valuation Methods: Berkus and Scorecard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Scorecard Method. https://ffistandard.org/glossary/scorecard-method/. 2026.