If 1) having your definition of value dictated is a bad thing and 2) selling equity equals having your definition of value dictated then 3) selling equity is a bad thing.

I believe 1) is mostly true but 2) is not necessarily true and especially should not be true.

Selling equity is a situational cost-benefit analysis, every time.

It all matters on how badly you want cash. They're not a shareholder unless you've already decided to sell them equity.