Scorecard Method
Discover how the Scorecard Method uses regional median valuations and weighted criteria to value pre-seed and seed European startups.
How It Works
The Scorecard Method starts with the regional median pre-money valuation for your startup's stage and geographic tier. It then adjusts this median based on how your startup compares to average startups in the region across seven weighted criteria: Team strength (30%), Market opportunity (25%), Product/technology (15%), Competitive environment (10%), Marketing/sales channels (10%), Need for additional investment (5%), and Other/timing factors (5%). Each criterion receives a multiplier (e.g., 1.5x for exceptional, 0.5x for below average). The weighted sum of all multipliers is applied to the regional median to produce your valuation.
When It's Useful
Use the Scorecard Method at the pre-seed or seed stage when you want a valuation grounded in real market data for your specific European region. It is especially valuable when comparing your startup against the local ecosystem — a strong team in a Tier 3 market may score differently than in a Tier 1 hub. The method requires honest self-assessment across the seven criteria but does not need revenue data or financial projections.
European Context
The Scorecard Method is highly sensitive to European geography because it starts from a regional median valuation — and these medians vary dramatically across Europe's 5-tier system. A Tier 1 pre-seed median is EUR 4.7M while a Tier 5 median is just EUR 1.2M. Using the wrong tier introduces 2–3x valuation errors. European startups also benefit from an AI premium multiplier of 1.20x, reflecting the growing EU focus on AI sovereignty. The method captures the reality that European fundraising cycles are longer and exit markets smaller than US benchmarks.
Key Parameters
EUR 4,700,000
EUR 1,200,000
30%
1.20x
Example
A Tier 2 seed-stage startup (regional median EUR 3.5M) scores: Team 1.3x (30%), Market 1.1x (25%), Product 1.2x (15%), Competition 1.0x (10%), Marketing 0.9x (10%), Investment need 1.0x (5%), Timing 1.1x (5%). Weighted sum = (0.39 + 0.275 + 0.18 + 0.10 + 0.09 + 0.05 + 0.055) = 1.14. Valuation = EUR 3.5M × 1.14 = EUR 3,990,000.