Sure, it misrepresents the valuation in the same way that deal structuring (liquidation preferences/etc) does in cash investments. The valuation you get by mult

Sure, it misrepresents the valuation in the same way that deal structuring (liquidation preferences/etc) does in cash investments. The valuation you get by multiplying the cash value of the investment by the equity that was sold is just a marketing number, it isn't inherently meaningful.