Worth keeping in mind the principal agent problem literature. Selling equity in a company is vulnerable to “lemon” problems. Startups with product market fit want to minimize dilution and keep executing before raising at a higher valuation in {12} months. Startups without PMF want to maximize runway to maximize probability of finding PMF. VCs know this, and startups know VCs know this, and etc. Unfortunately this can create perverse signaling incentives on both sides.