The quote explains exactly why: the higher the current round, the more risk that the next round will be a down round.
Investment valuations are strongly related to the amount raised. Don't think of it as "this is how much we think your company is worth" but more as "we want to invest in you and we're going to set a valuation based on the amount of capital we want to invest and the ownership we want to take".
Investment valuations are strongly related to the amount raised. Don't think of it as "this is how much we think your company is worth" but more as "we want to invest in you and we're going to set a valuation based on the amount of capital we want to invest and the ownership we want to take".