I've angel invested in 12 startups over 4 years. My hit rate improved 3x when I stopped relying on gut feel and started using a scoring system.
Why most angels lose money
First-time angels either:
- Fall in love with the founder and ignore red flags
- Get dazzled by a huge TAM but miss execution risk
- Invest too fast without comparing across deals
The fix is simple: a weighted scorecard.
The 8 criteria that matter
After studying how top seed funds score deals (Y Combinator, Sequoia, AngelList), I distilled it to 8 weighted factors:
- Team (25%) — Experience, domain expertise, coachability
- Market Size (20%) — TAM -> SAM -> SOM, growth rate
- Product/Stage (15%) — Prototype vs MVP vs revenue
- Traction (15%) — Users, revenue growth, retention
- Business Model (10%) — Unit economics, margins
- Competition (5%) — Moat, IP, network effects
- Deal Terms (5%) — Valuation, pro rata, board seat
- Exit Potential (5%) — Acquisition history, IPO path
The template
I built a Google Sheets scorecard that does all the math for you. It's pre-filled with sample scores for two imaginary startups (one B2B SaaS, one consumer app) so you can see exactly how it works.
What you get (free):
- 8 weighted criteria with suggested weights
- Pre-filled example startups
- Auto-calculated weighted score
- Color key: green=strong, yellow=neutral, red=weak
👉 Grab the free Google Sheets template here
The full version ($29) supports 50 startups, auto-generated radar charts, and custom weight presets for different sectors. I built it because I needed it myself — no fluff.
How to use it this week
- Make a copy in Google Sheets
- Fill in scores for your next 3-5 potential deals
- Sort by weighted score
- Only invest in the top 2
Your hit rate will thank you.
P.S. If you're evaluating a SaaS startup right now, the default weights already favor SaaS metrics (ARR growth, net dollar retention). The scorecard works for any stage — pre-seed to Series A.
