Return Potential Score Explained

What Is the Return Potential Score?

The Return Potential Score is one of the key components of the Hatcher Score. It ranges from 350 to 900, with an average of around 650. If a company scores at or near 650, it could mean:

• The startup’s return potential is near the midpoint of the range, or
• There isn’t enough information available to generate a more nuanced prediction.

What Does the Score Range Represent?

While theoretically spanning 350 to 900, actual scores often fall into a narrower bandwidth. This practical range of about 400 to 850 ensures that the scoring engine’s predictions remain realistic and account for the inherent limitations of predictive models.

How Is the Return Potential Score Calculated?

Hatcher’s advanced scoring engine employs machine learning to sift through:

1. Company profiles on the Hatcher+ greater platform
2. Publicly available and licensed data

By pinpointing trends and patterns in comparable companies’ past performance, the machine learning models estimate how a startup’s investment returns might play out in the future. The scoring system employs best-practice regression and categorization methods to forecast a company’s potential performance relative to its peers. 

How Should Investors Use the Return Potential Score?

For investors, the Return Potential Score is a handy guide to:

• Prioritize Attention: Focus on startups that may offer higher returns.
• Inform Decisions: Use it alongside other key metrics – such as the overall Hatcher Score, your own due diligence, and broader market knowledge.

Keep in mind that this score isn’t a definitive “go/no-go” signal. It’s one data point in your broader investment strategy, helping you make more informed decisions in the dynamic startup landscape.

What other proprietary analytics does Hatcher+Score provide?

Hatcher doesn’t stop at the Return Potential Score. We also generate:

• The Other Components of the Hatcher Score (eight in total)
• Valuation Projection

These additional tools help both investors and startups get a clearer picture of each venture’s potential, making it easier to identify opportunities that align with specific goals and risk profiles.