| A | B | C | D | E | F | |
|---|---|---|---|---|---|---|
1 | Berkus Method | vcmethod.com | (?) | |||
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3 | Value Driver | Add to Pre-Money Valuation | Assigned Value | |||
4 | 1. Sound Idea (basic value, product risk) | $0-$500,000 | $ 250,000 | |||
5 | 2. Prototype (reduces technology risk) | $0-$500,000 | $ 350,000 | |||
6 | 3. Quality Management Team (reduces execution risk) | $0-$500,000 | $ 300,000 | |||
7 | 4. Strategic Relationships (reduces market risk and competitive risk) | $0-$500,000 | $ 100,000 | |||
8 | 5. Product Rollout or Sales (reduces financial or production risk) | $0-$500,000 | $ 50,000 | |||
9 | PRE-MONEY VALUATION | $ 1,050,000 | ||||
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11 | Notes: | |||||
12 | The Berkus Method uses both qualitative and quantitative factors to calculate a valuation based on five drivers. It was developed in the mid-1990’s by Dave Berkus. | |||||
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14 | V1.0 | |||||
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