"investors agree to grant higher valuations, which help the companies with recruitment and building credibility, in exchange for guarantees that they'll get the

"investors agree to grant higher valuations, which help the companies with recruitment and building credibility, in exchange for guarantees that they'll get their money back first if the company goes public or sells" That's all she wrote- unless of course your startup actually sells something, than you might have a bottom number that still looks impressive once the initial investors have moved on.