[aarong]

This post helps raise some of the issues. I agree with webwright that it's just one factor though. It seems like considering pre money valuation as an output aligns you with the kind of thinking on the other side of the table - though I'm not an investor so can't really say.

That said, the big one seems to be finding an investment partner that you really like, that will be there through the ups and downs and who has well aligned motives.

Either way, what I can say from experience is that it is very useful to understand how the math works backwards and forwards. Investors go through this many more times then we do as entrepreneurs. So the better you understand the financial administration aspect of raising money the easier time you'll have when the conversation goes there. And you do want it to go there.