Startups typically require multiple, increasing rounds of finance. By seeking 20% for only 100k, the company is either incredibly desperate or can't generate en

Startups typically require multiple, increasing rounds of finance. By seeking 20% for only 100k, the company is either incredibly desperate or can't generate enough interest to get a better deal. Worse, it means that the founders are likely to end up with so little equity after, say, 4 rounds that they become demotivated, further increasing the odds of failure.