Purpose of Scorecard Valuation Method in VC

In the context of venture capital (VC) investments, understanding how to value private equity investments at different stages is crucial for both investors and managers. One commonly used method for valuing early-stage startups is the Scorecard Valuation Method. This method adjusts the average valuation of similar companies by several factors such as the strength of the management team, the size of the market opportunity, and the product or service's competitive advantage.

What is the primary purpose of using the Scorecard Valuation Method in venture capital?