Understanding the Scorecard Valuation Method in Venture Capital

In the context of venture capital (VC) investments, investors often analyze the potential success of startups before providing funding. One common method of valuing a startup during the early stages is the 'Scorecard Valuation Method.' This method uses various qualitative factors to assess the potential value of a startup relative to other startups in the same industry.

Which of the following statements about the Scorecard Valuation Method is true?