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.