At first I thought this seemed a bit like a scam, but on further reading, ignoring the $5k as that is a bit of a loss-leader, the terms of the $100k investment

At first I thought this seemed a bit like a scam, but on further reading, ignoring the $5k as that is a bit of a loss-leader, the terms of the $100k investment seem very well considered at this point. At a max of 20% of a funding round you don't have to be concerned that one investor is going to hold all the power. Though they may attempt to bring other investors in, you are able to maintain the balance in the investment. Daniel's history with Cue, having been through multiple rounds and an acquisition are also good signs for an early investor. I don't have the time to dig into the specifics, but I like this more than I thought I would. What are others thoughts? Am I missing something? How can we help others not have the initial reaction that I had if it would actually benefit them?