Startup Valuation Calculator
Estimate your startup’s valuation using the Berkus Method
Startup Valuation Calculator – Berkus Method
Nowadays, when anyone starts a startup, the biggest question is: What is the value of my company? Answering this question is even easier than using a startup valuation calculator using the Berkus Method
This calculation allows you to get a step-by-step valuation of your startup based on various factors like its Idea, Prototype, Team, Relationships, and Sales
What is the Berkus Method?
The Berkus Method is a popular startup valuation technique for early-stage startups. It considers five key factors.
- Sound Idea (Market Potential)–The strength of your idea and market size.
- Prototype (Technology) – Have you created a working model of the product?
- Quality Management Team – Your team’s experience and skills.
- Strategic Relationships – Partnerships and business networks.
- Product Rollout or Sales – Real market traction and sales numbers.
Each factor is assigned a monetary value, and their total becomes the Estimated Value.
Example Calculation
| Factor | Valuation (USD) |
|---|---|
| Sound Idea (Market Potential) | $50,000 |
| Prototype (Technology) | $10,000 |
| Quality Management Team | $40,000 |
| Strategic Relationships | $70,000 |
| Product Rollout or Sales | $40,000 |
| Final Estimated Valuation | $210,000 |
Benefits of a Startup Valuation Calculator
✔ Easy and quick calculation
✔ Perfect for early-stage founders
✔ Considers both risk and potential
✔ Helpful for investors too
Conclusion
If you are the founder of your startup, it is important to provide your company’s estimated valuation. Therefore, you can use the startup validation calculator. The Berkus method is a great tool to help you see a realistic figure that will be useful for fundraising and business planning.