Say their are two companies. 'Georges Growers' and 'Dave's Dilly Daddlers'. I give 'Dave's Dilly Daddlers' $100,000 for 10% of the company. But with the condi

Say their are two companies. 'Georges Growers' and 'Dave's Dilly Daddlers'. I give 'Dave's Dilly Daddlers' $100,000 for 10% of the company. But with the condition that if it's valuation ever falls below 1 millions dollars I get 20% equity, and if the company goes bust I get paid back before any other investors, and I get the title to the founders house. I also give 'Georges Growers' a $100,000 for 10%. But with no conditions, I'm just buying a portion of the company. Are both of these companies worth 1 million dollars? In some sense yes, but in a much more meaningful sense no. And many recent deals have been closer to the former than the latter.