Ohio TechAngels · 2010s
Risk Factor Summation
Founder takeaway
Founder reading: read this as the angel's risk-shopping list. Whichever factor they score -2 on is where they think they can negotiate you down. Pre-empt the conversation: identify your bottom-3 risk factors and lead the meeting with how you've mitigated them.
Best for
Sanity check against 12 risk dimensions.
Formula
Base ± (Σ risk scores × $250K), each factor -2 to +2Inputs
- Base valuation
- 12 risks: management, stage, legal, manufacturing, sales, funding, competition, technology, litigation, international, reputation, exit
Caveats
- 12 dimensions are broad
- $250K/score is convention
- Best as triangulation check
Source
↗ https://eqvista.com/risk-factor-summation-method/Verified 2026-06-03.
Other methods