Understanding Scorecard Valuation in Venture Capital

In the field of venture capital, investors are often faced with the challenge of valuing early-stage companies, which tend to have little to no revenue at the time of investment. One common method used in the valuation of such firms is the 'scorecard valuation method'. This approach factors in several qualitative and quantitative criteria to determine the potential value of a startup.

Which of the following best describes a fundamental aspect of the scorecard valuation method?