Is it really a very cheap rate? It seems like it is the market rate to me for newbie founders. If it were "very cheap", every VC and their mom would be rushing

Is it really a very cheap rate? It seems like it is the market rate to me for newbie founders. If it were "very cheap", every VC and their mom would be rushing to buy in on these types of startups -- and believe me, there are many VCs and a lot of VC money in SV.