Question 1

What is a startup scorecard?

Accepted Answer

A startup scorecard is a structured evaluation framework that VCs use to assess startups across multiple dimensions before making an investment decision. The standard framework covers 8 dimensions: Team (25% weight), Market (20%), Product (15%), Traction (15%), Business Model (10%), Competition (8%), Financials (5%), and Risk (2%). Each dimension is scored 1 to 10 and combined into a weighted overall score.

Question 2

How do VCs evaluate startups?

Accepted Answer

VCs evaluate startups using a combination of quantitative and qualitative criteria. The most common framework scores startups across Team, Market, Product, Traction, Business Model, Competition, Financials, and Risk. Team carries the highest weight (25%) because at early stages, the team's ability to execute matters more than the current product. A score of 7.5 or above with no dimension below 4 typically results in a pass. Below 6.0 or any dimension at 2 or below usually results in a decline.

Question 3

What score does a startup need to get funded?

Accepted Answer

In the standard VC scorecard framework, a weighted score of 7.5 or above with every dimension at 4 or above is a Pass. A score between 6.0 and 7.4 with all dimensions at 3 or above is a Conditional Pass, meaning the startup shows promise but needs improvement in specific areas. A score below 6.0 or any single dimension at 2 or below is typically a Decline. These thresholds vary by investor, with some firms placing more weight on specific dimensions.

Question 4

What are investor lenses in startup evaluation?

Accepted Answer

Investor lenses represent different evaluation philosophies used by major VC firms. The Sequoia lens emphasizes Market, Team, and Product. The YC lens prioritizes Team and Traction. The Tiger Global lens focuses on Traction, Business Model, and Financials. Each lens recalculates the weighted score based on the investor's priorities, helping founders understand how different types of investors would view their startup.

Question 5

What are red flags that VCs look for in startups?

Accepted Answer

Common red flags that VCs screen for include: single founder with no technical co-founder, more than 80% revenue from one customer (revenue concentration risk), heavy regulatory dependency, negative month-over-month growth at seed stage or beyond, and burn rate exceeding 18 months of runway. Any of these flags can override a good overall score and lead to deeper due diligence or a decline.

Question 6

How is the startup scorecard different at pre-seed vs seed vs Series A?

Accepted Answer

The scorecard uses stage-aware benchmarks. At pre-seed, a team with 1 to 2 years of relevant experience and an idea-stage product can score well because expectations are lower. At seed, investors expect a launched MVP with early traction (INR 1 to 5 lakhs MRR) and a validated business model. At Series A, the bar rises significantly: teams need 5+ years experience, INR 10+ lakhs MRR, and clear unit economics. The same startup inputs produce different scores at different stages.

Startup Scorecard

Company

Team

Market

Product

Traction

Business Model

Competition

Financials

Risk Profile

Investor Lenses

How this scorecard works

Verdict thresholds

Investor lenses