Value your startup with the Berkus Method - Deepstash
Value your startup with the Berkus Method

Value your startup with the Berkus Method

The Berkus Method is a simple and convenient rule of thumb to estimate the value of your box. It was designed by Dave Berkus, a renowned author and business angel investor. It is meant for pre-revenue startups. 

The starting point is: do you believe that the box can reach $20M in revenue by the fifth year of business? If the answer is yes, then you can assess your box against the 5 key criteria for building boxes.

52

527 reads

CURATED FROM

IDEAS CURATED BY

kimtrevi

Recruitment consultant

The idea is part of this collection:

Music and Productivity

Learn more about productivity with this collection

How to choose the right music for different tasks

The benefits of listening to music while working

How music affects productivity

Related collections

Similar ideas to Value your startup with the Berkus Method

Value your startup with the Scorecard Valuation Method

Value your startup with the Scorecard Valuation Method

The Scorecard Valuation Method is a more elaborate approach to the box valuation problem. It starts the same way as the RFS method i.e. you determine a base valuation for your box, then you adjust the value for a certain set of criteria. 

Nothing new, except that those criteria are themselv...

Value your startup with the Comparable Transactions Method

Value your startup with the Comparable Transactions Method

The Comparable Transactions Method is really just a rule of three.

Depending on the type of box you are building, you want to find an indicator that will be a good proxy for the value of your box. This indicator can be specific to your industry: Monthly Recurring Revenue (Saas), HR head...

Value your startup with the Risk Factor Summation Method

Value your startup with the Risk Factor Summation Method

The Risk Factor Summation Method or RFS Method is a slightly more evolved version of the Berkus Method. First, you determine an initial value for your box. Then you adjust said value for 12 risk factors inherent to box-building.

The initial value is determined as the average value for a sim...

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Personalized microlearning

100+ Learning Journeys

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates