Having been through the VC system, I don't believe his face value statement, and I 100% believe you're right.
They want to invest, but not at his terms that he's demanding.
The thought experiment is - he wants to raise 1m @ 2m val. 50%. There's not a VC/angel/seed who wouldn't take that deal given who he is. So he's pricing himself at a level he "is willing to do this startup thing again" and it's simply too expensive.
A guess: Smart VCs know that they are not smart enough to evaluate a business from a plan or a founder' background and instead wait for the revenue growing explosively.
A smart VC knows they have 0% chance of getting into that round (even the top VC maybe 1/3 chance) much less leading it by then, and only chance is getting into it when it’s still contrarian.
They want to invest, but not at his terms that he's demanding.
The thought experiment is - he wants to raise 1m @ 2m val. 50%. There's not a VC/angel/seed who wouldn't take that deal given who he is. So he's pricing himself at a level he "is willing to do this startup thing again" and it's simply too expensive.