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After 20 years: Updating the Berkus Method of valuation

Berkonomics

So how do you use financial projections as valuation metrics when you know the odds of those being accurate predictors of the future are so very unreliable? There is a universal truth: fewer than one in a thousand start-ups meet or exceed their projected revenues in the periods planned. Today, for me, that hurdle number is $20 million.

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How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

The metrics were good but we wondered how much better they would be when we expanded our product. But that’s harder to build in 2016 than it was in say 2005. You may have paid marketing: SEM, Social Media Ads, Banner Ads, email lists, etc. And influencers may help once or twice but ultimately nothing is free.

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