That means the investor agrees that at the time he buy stocks, the company is no longer worth $9 billion but it's worth ($20 billion - $245 million). Basically because they developped their business, their technologies, hired/trained people, they "created" value and the company is worth more than before.
The funding itself doesn't increase the company valuation, but it validates it. Before funding the board can declare that the company is worth $XX billion, but the fact that an investor agrees to put money on the basis of that valuation makes it real.
The funding itself doesn't increase the company valuation, but it validates it. Before funding the board can declare that the company is worth $XX billion, but the fact that an investor agrees to put money on the basis of that valuation makes it real.