As an angel investor, the hardest part is knowing what a startup is worth.
The Berkus Method and Scorecard Valuation Method are your best friends. Here's how to use both in a Google Sheets template.
The Problem with Startup Valuation
Early-stage startups have no revenue, no comparables, and a lot of hope. You need a framework.
Berkus Method in 60 Seconds
Assign value to 5 risks: Technology ($500K), Execution ($500K), Market ($500K), Team ($500K), Strategic ($500K).
Max pre-money = $2.5M. Score each 0-100%, multiply.
Scorecard Method (The Better Way)
Use 7 weighted criteria comparing to a benchmark startup. Weights: Management 30%, Market 25%, Product 15%, etc.
Use a Spreadsheet
Don't do this in your head. You need a system. I built an Angel Investment Scorecard in Google Sheets that does both methods automatically.
Get the free version here: https://microtoolsb2b.gumroad.com/l/angel_scorecard
Note: The link above is for the paid product — but you can also find a simplified free version on Gumroad.
Start making smarter angel bets today.
