"... at an even higher price" is perhaps unclear; I presume he meant "... at an even higher valuation". That is, the total percentage of the stock you have to

"... at an even higher price" is perhaps unclear; I presume he meant "... at an even higher valuation". That is, the total percentage of the stock you have to sell to the investor to raise the money is less if you raise in two stages than if you get it all up front. There's an assumption here: that you actually manage to make demonstrable progress in the business between the first and second round. If you think it's going to take longer to show progress than the amount of time $2M will give you, then you should raise more to start with.