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If you raise $3M on a note, you're already implicitly valuing your company at $10M - $15M since since each round is meant to take roughly 20% of your company. Investors wouldn't give you $3M unless they thought your company was worth $10M already and you wouldn't take it unless you thought there was a decent chance of bring your company to a 30M valuation by the time the money ran out.

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There is no written rule that says "each round is meant to take roughly 20% of your company", and a company is never guaranteed another round. I know several entrepreneurs who have been given term sheets for over 50% of their company. Or no term sheets at all.

There is no "rule" about implied valuation either. Entrepreneurs can raise $3m in notes $100k at a time, usually from investors that are much less price-sensitive than VCs leading a priced round. It's a lot harder to raise a priced Series A at a $10m+ valuation than raising piecemeal notes at the same valuation cap (or uncapped notes, even).

Again, this is all manageable by the entrepreneur, but there are no "rules" like it often appears from the outside.

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