Your valuation fails the simplest fundamental, which is the share % of what the VC will get after the seed round. In VC logic, they will be getting around 14,3

Your valuation fails the simplest fundamental, which is the share % of what the VC will get after the seed round. In VC logic, they will be getting around 14,3% for the same amount of money than they would get by giving the same 1 million for almost half the value. In multiple dilutions at inflated figures and the "A" round where the lead VC grabs 30% (no matter how much money they give), the seed guy stands to be the biggest loser. From the perspective of a self-serving VC, he/she stands a greater chance of vetting a company at 14,3%, giving him the opportunity to maximize return down the line, as the dilutions will not shrink by almost half (as would under your logic through YC). However, if that VC believes in vetting a "YC-company" over his/her own ability to pick a winner, then that VC should probably not be in the startup-investing market in the first place.