The bargaining position of investors vis-a-vis the entrepreneur is always misaligned.
The entrepreneur is typically far less experienced, and far less resourced in legal matters, corporate structuring and access to financial resources. That imbalance leads to the great temptation for many investors to exploit and take advantage of start-ups. I have been hearing about disaster stories behind closed doors from as far as Singapore, to Portugal, to Germany to the US. It seemed as though every entrepreneur had a war story, only shared in confidence. But only through shining a light on the pitfalls and traps will entrepreneurs hopefully be better equipped to fight back.