Berkus Method Startup Valuation Calculator
Free Early-Stage Valuation Tool for Founders & Investors
Easily estimate your early-stage startup’s value with our free Berkus Method Valuation Calculator. Designed for founders, angel investors, and venture capital professionals, this tool applies the widely-used Berkus valuation framework to help you assess a realistic pre-money valuation without complex financial projections.
Frequently Asked Questions (FAQs)
What is the Berkus Method for startup valuation?
The Berkus Method is a simple framework for estimating the value of an early-stage or pre-revenue startup. It assigns a monetary value—up to $500,000 each—to five key success factors: sound idea, prototype, quality management team, strategic relationships, and product rollout or sales. The maximum total valuation using this method is typically $2.5 million.
To learn more, read our complete Berkus Method Guide.
Who should use the Berkus Method Calculator?
This calculator is ideal for startup founders, angel investors, venture capitalists, and accelerators who need a quick, credible way to estimate the value of a pre-revenue business without relying on financial forecasts.
Why use the Berkus Method instead of other valuation models?
Unlike more complex models such as Discounted Cash Flow (DCF) or Scorecard Valuation, the Berkus Method focuses on qualitative factors and avoids unreliable early-stage revenue projections. This makes it particularly useful for concept-stage or product-development-stage companies.
Is the Berkus Method accurate?
While the Berkus Method provides a structured way to value early-stage startups, it should be considered a starting point rather than a definitive valuation. Investors and founders often combine it with other methods, such as the Risk Factor Summation Method or Comparable Transactions, for a more complete picture.
Can the Berkus Method be used for SaaS startups?
Yes. The Berkus Method can be applied to SaaS companies and other technology businesses, particularly in their early stages, by evaluating progress in product development, team quality, market traction, and strategic partnerships.
How does your Berkus Method Calculator work?
Our calculator lets you assign scores to each of the five Berkus Method categories based on your startup’s current progress. It automatically adds these up to estimate your potential pre-money valuation. You can adjust your inputs to see how different factors impact your valuation.
Disclaimer: The Berkus Method startup valuation calculator is for informational purposes only. Always consult with legal and financial professionals before making investment decisions.