re: warning signs I agree. For those asking how it could go wrong, a brief hypothetical example. Let's say you have a 500k seed round, with 100k initially, the

re: warning signs I agree. For those asking how it could go wrong, a brief hypothetical example. Let's say you have a 500k seed round, with 100k initially, then 100k after each of 4 milestones. If the investor is out to pull a fast one, they might make their equity acquisition immediate (all of it) while you get the money in tranches. Then, let's say they decide you haven't met the first milestone. You're running out of cash. They suggest re-negotiating the terms. Since you "didn't meet" the milestone, it's a down round this time. Maybe they wind up with a controlling interest. Or let's say you find that scenario coming and find another investor. They might have a liquidation preference so they get paid more; and perhaps first too. Plenty of snares can be constructed by investors who want to take advantage.