5. Berkus Method
Sound Idea (basic value)
Prototype (reduces technology risk)
Quality Management Team (reduces execution risk)
Strategic Relationships (reduces market risk)
Product Rollout or Sales (reduces production risk)
6. Scorecard Valuation Method
Strength of the Management Team (0–30%)
Size of the Opportunity (0–25%)
Product/Technology (0–15%)
Competitive Environment (0–10%)
Marketing/Sales Channels/Partnerships (0–10%)
Need for Additional Investment (0–5%)
Other (0–5%)
14. But:
Preseed - 5-10% or non equity financing (10-50k USD) - Idea
Seed - 5 - 15% or non equity financing (50k-1M USD) - Prototype
Round A - 15-40% (5-15M USD) - Go to market
Round B - 5-20% - Scaling
Round C - up to 10% - Expansion