We evaluate equity crowdfunding campaigns and award each campaign a score from 1 to 100.
ECF Scorecard
Evaluating the prospects of mature businesses is difficult, even if they have a strong history of producing consistent revenue streams. The problem becomes infinitely greater for early stage businesses, many of whom have not started generating revenues or even had their product validated by the market.
The ECF Scorecard methodology introduces individual weighted percentages based on the relative importance of a number of key variables. “Strength of the Management Team” is and will always be the most important factor in valuing a startup (and any company)! The next most important thing is the size of the opportunity, with the Product or the Technology coming after that.
Weighted Average Percentages
The individual weighted percentages for each of the variables is presented here. These individual scores are added up to give a total score out of 100, which is the ECF Scorecard.
The weightings are as follows: a) Strength of the Management Team: 0-30%; b) Size of the Opportunity: 0-25% c) Product/Technology: 0-15% d) Competitive Environment: 0-10% e) Marketing/Sales Channels/Partnerships: 0-10% f) Need for Additional Investment: 0 – 5% g) Other: 0 – 5%