Valuation Approach for Early-Stage Ventures

ABC Ventures is a venture capital firm that specializes in early-stage technology startups. Recently, ABC Ventures evaluated a potential investment in a new software company, Tech Innovators, which has shown promising growth but is not yet profitable. To determine the pre-money valuation of Tech Innovators, ABC Ventures is considering several approaches. The firm estimates future cash flows, but due to the high uncertainty associated with startups, they are also contemplating using a Comparable Companies Analysis as a secondary method.

Which valuation approach should ABC Ventures prioritize when determining the pre-money valuation of Tech Innovators?