This is a naive and simplistic view that immediately breaks down in the face of individual freedom. Founders are not forced to take investment, nor are investo

This is a naive and simplistic view that immediately breaks down in the face of individual freedom. Founders are not forced to take investment, nor are investors force to make it. Terms must be negotiated. You can say liquidation preference should be forbidden, but that's a slippery slope. Many founders accept a liquidation for larger valuation, and many deals would not happen without it. I'm not sure why we would draw the moral line here since the risk of founding and joining startups exists either way.