How Do You Look at Valuations?

Valuations are tricky. The fact is that the entrepanurs are just making up the valuations. They are literally pulling them out of a hat and sayng, this is my valuation. Does this mean that the valuation is really worth it for the angel investor? Well, that's a big question. What you need to understand is an angel usually wants to be getting a meaningful percentage for their money. If it's very early, risky, you don't want to be getting less than like five % of the company. You know, get something substantial for your investment. So valuation does matter. I mean, people think it doesn't, but it does,. And if you get