Dishonest men live at all levels. This doesn't solve the original problem: What you suggest won't solve the issue of investors taking advantage of startups or

Dishonest men live at all levels. This doesn't solve the original problem: What you suggest won't solve the issue of investors taking advantage of startups or the other way around. They will simply play another looser version of the handshake as you want it to exist. Anyone that is eager enough will get into this space before they are ready and be subject to the same sharks. But not every investors is bad, for if they were they would earn an untrustworthy reputation. The handshake deal first started as a way to avoid legal or financial promises. By giving the handshake such rules, you are diminishing it's intrinsic value as a "safety zone" for both parties to freely communicate. But of course, this shared information can be used to one of the parties advantage over the other. Now, as another step towards building confidence in the investor/startup relationship, this is a great idea. It refines, offers some support, and starts communication between the parties on a smaller scale.