 Every investor gets a little percentage of your company, right? Or maybe a big percentage. Can you dilute it so far that you can't get investment money anymore? You can dilute it so far that you lose your company, which is worse. If you raise at a bad valuation, you'd actually have to do something called a down round, where the next round you raise has to be at a lower valuation because you basically screwed up the valuation and you did not fulfill the promises to your investors or the growth you were promising your investors. Tough sell.