I think the problem is extrapolating from simple examples used to illustrate thing. eg Rich Dad or similar: You have an idea for a company. You create the comp

I think the problem is extrapolating from simple examples used to illustrate thing. eg Rich Dad or similar: You have an idea for a company. You create the company and deposit $10k in it's account. You bring on a programmer to build the project paying him in equity. The company could be worth $100m in a few years, so his 10% is better than a salary. I'm sure parallel toy ideas exist in people's minds about investors. If someone puts $1m into a company that's still mostly an idea and a prototype, it doesn't seem all that far fetched that the investor would expect to basically own the company. What have the founders contributed? An idea and 6 month work. What has the investor contributed? $1m. In the absence of actual experience, people develop biases based one imagined experiences where they are the hero. I don't mean that in a bad way. Everyone does it. It's hard to see an outside perspective unless you encounter it.