Berkus Method Calculator
Designed for pre-revenue startups. Each of five risk factors can add up to a fixed amount (classically $500K) to the valuation. Score how far you have progressed on each.
Your numbers
- Share of maximum
- 52%
- Maximum possible
- $2.5M
Fund Force runs an AI analysis of your market and matches you with investors, accelerators and grants that fit your stage and sector.
Get matched with Fund Force →Value by factor
| Factor | Score | Value |
|---|---|---|
| Sound idea (basic value, product risk) | 80% | $400K |
| Prototype (reduces technology risk) | 60% | $300K |
| Quality management team (execution risk) | 70% | $350K |
| Strategic relationships (market risk) | 30% | $150K |
| Product rollout or sales (production risk) | 20% | $100K |
The formula, in plain English
- Valuation = Σ (Score % × Maximum per factor) across 5 factors
- Maximum valuation = 5 × Maximum per factor
Frequently asked questions
When should I use the Berkus method?
Before you have revenue. Once you have real sales, revenue multiples and the VC method are more meaningful.
Is $500K per factor fixed?
No. Dave Berkus suggested $500K (for a $2.5M maximum) in the US in the 1990s; adjust the maximum to what pre-revenue rounds in your market actually price at.
Do investors really use it?
Many angels use it as a quick sanity check alongside the scorecard method rather than as the final price.
Results are estimates for planning and education — not financial, legal or tax advice.