The Pre-money valuation is the agreed-upon value of your company immediately before an investment is made in it.
Like anything else, in order to sell something (or in this case, a part of something), you first have to determine how much it's worth...that's your pre-money valuation. However, in the case of equity financing this works a little differently than selling half of your DVD collection.
This is undoubtedly the most discussed and debated number in almost every early stage financing. Why? Click the 'More Info' link below and find out.