Pre-money Valuation is the determination of the fair market value of a business entity before the injection of new capital. Pre-money valuation for early-stage or startup businesses can pose a challenge because such business entities have no revenue or track record to guide the valuation. One measure which venture capitalists use to determine the pre-money value of a business is to identify comparable businesses in a similar business and operational model to serve as a benchmark of the potential for the pre-money value of the business in question.