By: Bill Payne, Frontier Angels

This article was originally written in May 2001 and has been updated multiple times.  Others have referred to this and similar methods as the Benchmark Method and the Bill Payne Method.  The Scorecard Valuation Methodology is useful for investment in most pre-seed and seed stage opportunities, except those with very high capital requirements prior to achieving first revenues (such as some life science and energy deals). 

By Marianne Hudson, Executive Director Emeritus

The Securities and Exchange Commission issued a concept paper seeking comments on “harmonizing” securities offering exemptions a few months ago.  These exemptions, like Regulation D, which investors rely on for more than half of all private offerings, set the rules for how securities can be bought and sold without extensive registrations. This SEC paper provided a truly unprecedented opportunity for organizations like ACA to suggest improvements to regulations that impact angels and the startup companies we support.