The argument for refusing to accept too low a price is self-evident, but there is an equally compelling argument not to push too aggressively for a high price. Too high a stock price too early can have several negative effects. Investors in subsequent rounds need to feel they got a fair shake, particularly as their support will be necessary when the company hits the disappointments that inevitably come along the way. Even more importantly, employees need to see smooth, progressive stock price growth over time to feel that their efforts are well spent. Employee disillusionment and defection is common when stock prices don't grow in a consistent fashion.
Venture capital tends to be expensive capital.
It is expensive because it generally brings with it free consulting, an enormous network of relevant contacts, access to additional capital, and early validation of success. There is nothing wrong with augmenting venture dollars with less expensive capital, as long as it's done at the right time and under the right conditions. Start-ups today enjoy access to several additional types of financing. In fact, substantial bank debt has no place on the balance sheet of an early stage company, and most bankers will tell you so. Their jitters can often make things worse.