[ghshephard]

I've read this post probably 20 times in the last day or so (honestly) - and I'm still trying to puzzle through what the possible negative elements are.

I think the idea is that the VC is coming in at $20M valuation, but the angels are coming in at $12M valuation, and you want the angels money (for their connections/assistance) - but only want, say, $150K of their money at $12M valuation. But, if you accept their money at $12M, then you also have to accept YC @ $375K as well - which leads to greater dilution than you want.

You would prefer to take:

   VC: $20M Valuation - $3M Invested 
   Angel: $12M Valuation - $150K Invested

Did I get that correct?