The Fact Sheet as you knew it is now a thing of the past. From now on, all equity campaigns launched on our platform will feature the Scorecard, a more structured and objective evaluation tool.
This Scorecard is designed to provide investors with a clearer, data-driven way to assess early-stage companies. Based on four academic studies*, it evaluates businesses in a specific moment in time across key success factors such as:
· Market Potential – Is the target market large enough?
· Management Quality – Does the leadership team have the necessary experience?
· Financial Health – Is the company financially sustainable?
· Competitive Positioning – How does the company stand out in its industry?
Unlike a simple descriptive document, the Scorecard assigns a structured score, making it easier for investors to compare companies objectively and identify their strengths and weaknesses at a glance.
How does Spreds use the Scorecard?
The Scorecard is not just an evaluation tool for investors; it plays a key role in the way investment opportunities are presented on Spreds:
- Helping investors make informed decisions: the Scorecard provides a structured way for self analysis, making it easier to compare opportunities and align investments with personal strategies.
- Prioritizing companies for Tax Shelter investors: companies eligible for the Tax Shelter that achieve a minimum score of 50 points are automatically included in the Tracer, ensuring they are highlighted to investors looking for tax-efficient opportunities.
How to read and analyze the Scorecard
The Scorecard provides a structured evaluation of early-stage companies, breaking down key success factors into objective criteria. Here's how investors can interpret and analyze the Scorecard effectively:
- Understand the criteria: the Scorecard assesses companies based on internal and external success factors, financial health, market potential, and return potential. Each criterion contributes to an overall score, helping investors gauge the company’s strengths and areas for improvement.
- Evaluate the responses: each factor is supported by specific data points, such as revenue figures, investment amounts, market size estimates, and management experience. Investors should cross-check with the company's provided documentation (e.g., business plan, financial statements).
- Consider external due diligence: some criteria include validation by external investors or signed agreements, providing additional confidence in the company’s claims. Investors should pay special attention to these elements when assessing credibility.
- Compare companies objectively: since all companies are assessed using the same framework, the Scorecard enables direct comparisons. Investors can prioritize opportunities that align with their risk appetite and investment strategy.
- Use the glossary for key terms: the Scorecard includes a glossary defining terms like TAM (Total Addressable Market), gap analysis, and risk analysis. Familiarizing yourself with these terms ensures a better understanding of the company’s positioning.
What Investors Need to Know
· The Scorecard is not a guarantee of future success – it reflects the company's current situation based on available data. Startups evolve, and their scores can improve or decline over time.
· The Scorecard is dynamic – it is updated each time a company raises funds through Spreds and may be revised at least once a year.
· The Scorecard is just one tool – investors should still perform their own due diligence, analyzing factors like market trends, competition, and leadership beyond the Scorecard assessment.
· The Scorecard is neither a rating nor a score based on due diligence by Spreds.
Where Can You Find the Scorecard?
The Scorecard will be available for each upcoming campaign (under the DEAL section), along with a breakdown of the individual factors contributing to the score.
By providing a clear, objective, and structured evaluation, the Scorecard allows investors to make more data-driven investment decisions while maintaining flexibility to prioritize the factors that matter most to them.
*Which academic research has been taken into account?
· Sevilla-Bernardo, Javier, Blanca Sanchez-Robles, and Teresa C. Herrador-Alcaide. 2022. Success Factors of Startups in Research Literature within the Entrepreneurial Ecosystem. Administrative Sciences 12: 102.
· Torsten Klein, Wienel Dasija and Sophie Meinerzhagen. 2022. Phase dependency of success factors in startups. IBAL Schriftenreihe: Contributions to Business Administration and Leadership Jahrgang 2022, Band 1.
· Geral J. Groenewegen and Frank de Langen. Critical Success Factors of the Survival of Start-Ups with a Radical Innovation. 2012. Journal of Applied Economics and Business Research 2(3): 155-171.
· José Santisteban, National University of San Marcos and David Mauricio, National University of San Marcos. Systematic Literature Review of Critical Success Factors of Information Technology Startups. 2017. Academy of Entrepreneurship Journal Volume 23, Issue 2.