What is the average startup rating on gust.com?
The rating system provided by Gust on the investor side is not intended to be used as any type of objective or standardized measurement. That’s because it was designed to be completely customizable for each angel group or venture fund using the platform.
Group administrators have the ability to turn ratings on or off, show or hide them, establish the scale for them, and decide on how many criteria a profile is rated. As such, it is an extremely flexible system that can be used in many different ways, so an “average” would be like averaging apples and truffles.
At its absolute most basic, some venture funds use a single scale with a yes/no choice to serve as a voting mechanism for the partners.
At the other end, some highly disciplined angel groups ask their members to rate each company from 1 to 100 on five separate scales (management, model, market, execution, terms, etc.), and use the resulting ratings to determine which companies advance to a full group presentation.
At New York Angels, for the past year we’ve been using the rating system as a pre-screen, to determine whether an applicant company should be invited to meet with the screening committee. Every company that applies is automatically sent to an appropriate subset of angels, who are asked to rate the profile on a single scale of 1-4, indicating how strongly they feel about inviting the company in for screening (1 being “Don’t Invite”, 4 being “Must Invite!”)
Our group administrator then looks at the score average for all the month’s applicants, and uses that to determine which dozen or so companies should be invited to the next step in the process. And since every rating can be accompanied by comments from the reviewer, those companies that are not invited back usually get solid feedback, made easier by aggregating the comments of the reviewers.
*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *
Written by David S. Rose
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