The Berkus Method, developed by venture capitalist Dave Berkus, is a valuation framework designed to assess the potential value of early-stage startups. This method is a pragmatic approach to estimating a startup’s value by assigning specific monetary values to key milestones and elements integral to a company’s success. The five criteria typically considered in the Berkus Method include the quality of the management team, the size of the market opportunity, the level of completed development, the establishment of a sustainable business model, and external validation through strategic partnerships or agreements. This method is precious in the early stages of a startup when traditional valuation methods may be challenging due to limited financial data. By breaking down the valuation into tangible components, the Berkus Method provides entrepreneurs and investors with a structured and comprehensible framework to assess the potential of a business idea. Its importance lies in guiding discussions between founders and investors, fostering a clearer understanding of the startup’s strengths and weaknesses. The Berkus Method is especially relevant in industries with high uncertainty and innovation, such as technology and biotech, where traditional valuation models may be less applicable. Early-stage startups in these sectors often face challenges in establishing concrete financial metrics, making the Berkus Method a valuable tool for entrepreneurs seeking funding and investors evaluating opportunities in dynamic markets. Overall, the Berkus Method is an essential tool for estimating the value of startups in their nascent stages, offering a structured and transparent approach that aligns with the unique characteristics of early-stage ventures and provides a solid foundation for investment decisions.