- Valuation of early stage businesses is difficult due to lack of comparables and transparency. - Angel investors typically see median returns of 0% but average returns of 20% due to most returns coming from 10% of investments. - Lower valuations may increase potential returns for angels but there is little data on what valuations should be or if valuation impacts returns. - Reasonable to determine valuation by considering what exit value is needed for investors to achieve desired returns given assumptions about investment amount, dilution, and exit share.