It is the case that there is between 20-30% valuation that they typically need to invest. And yes, that does effect valuation math. However, there are of cours

It is the case that there is between 20-30% valuation that they typically need to invest. And yes, that does effect valuation math. However, there are of course plenty of other cases outside the "norm" a) A super hot company people will always make exceptions for. Especially smaller more focused funds like Union Sq. b) No VC is going to give you $250k on an A round valuation and expect 25% of the company. They will either be angels (who will take more like 2-25%) or if a VC they will do the $250k as convertible debt to the A round. Do not raise $2m if you don't need $2m. Structure your round around the capital requirements, not the other way around.