Comments on: The Berkus Method: Valuing an Early Stage Investment. https://berkonomics.com/?p=1214&utm_source=rss&utm_medium=rss&utm_campaign=the-berkus-method-valuing-an-early-stage-investment Dave Berkus' business insights Tue, 14 Sep 2021 19:33:53 +0000 hourly 1 https://wordpress.org/?v=7.0 By: englishdon https://berkonomics.com/?p=1214&cpage=1#comment-151406 Tue, 14 Sep 2021 19:33:53 +0000 https://berkonomics.com/?p=1214#comment-151406 thank you so much it was indeed useful

]]> By: Dave Berkus https://berkonomics.com/?p=1214&cpage=1#comment-141628 Mon, 12 Oct 2020 21:05:18 +0000 https://berkonomics.com/?p=1214#comment-141628 In reply to James G..

Key metrics are simplicity and pre-revenue for this method. There are several other methods, each requiring much more information and effort.
-Dave

]]> By: James G. https://berkonomics.com/?p=1214&cpage=1#comment-141627 Mon, 12 Oct 2020 20:38:32 +0000 https://berkonomics.com/?p=1214#comment-141627 Hi Mr Berkus
Really appreciate your work in developing this method.
I am a boot strap tech start up preparing to launch proprietary app based process, shortly. Considering the other valuation methods, is there a litmus that would advise one method vs another.

Thanks James G.
info@medshiftxchange.com

]]> By: Dave Berkus https://berkonomics.com/?p=1214&cpage=1#comment-136475 Wed, 18 Mar 2020 15:45:54 +0000 https://berkonomics.com/?p=1214#comment-136475 In reply to Robert.

Robert,

Service businesses are rarely valued as high as those with recurring or predictable (contracted) revenue. I would use the formula as presented and be conservative as to the individual valuations.

Dave

]]> By: Robert https://berkonomics.com/?p=1214&cpage=1#comment-136417 Sun, 15 Mar 2020 21:56:52 +0000 https://berkonomics.com/?p=1214#comment-136417 Hi Dave,

Thanks for this!

I am trying to value a pre-revenue service oriented recruitment business. Do you think this model still loosely fits, would you lower / increase the numbers?

Just baring in mind it is an inherently low barrier to entry market where we own no proprietary functions.

Thanks in advance!

]]> By: Dave Berkus https://berkonomics.com/?p=1214&cpage=1#comment-136396 Sat, 14 Mar 2020 21:02:19 +0000 https://berkonomics.com/?p=1214#comment-136396 In reply to mostafa.

Mostafa,
Not enough information. But from what I can guess of your question: No one element can exceed the maximum allowed for each element. Even a great team with no product or validation from the market would score lower. Hope this helps.

Dave

]]> By: mostafa https://berkonomics.com/?p=1214&cpage=1#comment-136393 Sat, 14 Mar 2020 13:39:01 +0000 https://berkonomics.com/?p=1214#comment-136393 Hello Mr Berkus
Thank you for text. I have question?
If one of five case was very good. Do I have to consider the same amount of 1.2 million?

]]> By: John Campbell https://berkonomics.com/?p=1214&cpage=1#comment-128950 Tue, 23 Apr 2019 14:43:23 +0000 https://berkonomics.com/?p=1214#comment-128950 Great topic.I want to referece this great resource https://www.cloudways.com/blog/startup-funding-stages.

]]> By: ahmad https://berkonomics.com/?p=1214&cpage=1#comment-126758 Sun, 03 Mar 2019 11:17:23 +0000 https://berkonomics.com/?p=1214#comment-126758 Hi Mr Berkus,
We design a international startup, which currency should we use? The currency of origin country or dollars?
Regards,
Ahmad

]]> By: Shadab Mobin https://berkonomics.com/?p=1214&cpage=1#comment-121286 Thu, 11 Oct 2018 11:14:53 +0000 https://berkonomics.com/?p=1214#comment-121286 Thanks Dave !! Really appreciate your response.

Regards
Shadab

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