Sure, but that money is rarely enough. Investors take on high risk when investing in a startup, but that risk is localized. They typically have a diversified p

Sure, but that money is rarely enough. Investors take on high risk when investing in a startup, but that risk is localized. They typically have a diversified portfolio so that the successes outweigh the failures. As a result their local risk tolerance can be high. Founders, on the other hand, are typically investing their time, energy, etc., mostly in their company. Their risk isn't localized, so they can't have as high of risk tolerance. As such, they need a higher EV in order to justify an equivalent probability of failure. Giving up power lowers your EV. In the event of an exit, people with power get paid. As such, founders should be looking for investors who are collaborators. The investor you're describing should be avoided at all costs, because they're just looking for patsies to take on unreasonable risk for their own gain. The collaborative model isn't bad for investors--it doesn't have as high of reward if it succeeds, but there's also lower risk because being involved in a company gives you a better idea of when to invest more or pull out. But this model isn't popular with investors because it takes more work.