Explain Berkus Approach for valuing Startups.

The Berkus Approach, created by American venture capitalist and angel investor Dave Berkus, looks at valuing a startup enterprise based on a detailed assessment of five key success factors: (1) Basic value, (2) Technology, (3) Execution, (4) Strategic relationships in its core market, and (5) Production and consequent sales. A detailed assessment is carried out evaluating how much value the five critical success factors in quantitative measure add up to the total value of the enterprise. Based on these numbers, the startup is valued. This method caps pre-revenue valuations at $2 million and post-revenue valuations at $2.5 million. Although it doesn't consider other market factor, the limited scope is useful for businesses looking for an uncomplicated tool.