Each Business Angel who is willing to proceed to an investment in a startup (Gazelle in our case), should use a tool to evaluate the investment target (meaning the Gazelle) before making the investment. This is needed in order to agree with the founders of the startup about the valuation of the company and the percentage of shares that he will acquire after the investment.

One of the most common and reliable valuation methods for startups is the “The Scorecard Valuation Methodology”, also known as the “Benchmark Method”, or the “Bill Payne Method”, named by the angel investor that originally introduced it in 2001.1

It is worth mention that this valuation method is in line with the proposed “Evaluation of the application”2, as presented in the relevant chapter of the “Operation Manual for the Support Centers” for the Gazelle Project.