In “Return of the Jedi” the rebel fleet drops out of light speed to attack what they think is a not-yet-operational deathstar. In what has become one of the most meme-ized lines from the Star Wars saga, Admiral Ackbar, a minor character, exclaims “It’s a Trap!”

This is how I feel about some of the sky-high valuations and huge amounts of capital being raised by companies in series B and series C financings right now. I understand the strategy of raising a lot of capital when you can (not when you need to), especially when valuations allow you to do it with little dilution. But I think doing so is a trap that is going to harm these mid-stage companies over the long-term.