Generally it means you have an entrepreneurial track record, but it could also mean you have amazing investor connections, an executive track record of tremendous success in a relevant business, an EIR arrangement where the VC wants to fund you, etc.

Going from nonfundable to fundable or from a premoney valuation of x to 2x (which is what someone should do to merit this sort of disproportional value) gets rewarded by a corresponding increase in ownership.