It's more complicated than that. Complexity is almost always more risky for the founders than the investors because of information asymmetry. Because the inve

It's more complicated than that. Complexity is almost always more risky for the founders than the investors because of information asymmetry. Because the investors do a lot of deals, they understand all of the implications and side effects of each term. The founders, even with good advisers and attorneys will likely have trouble understanding the implications of complex terms. This is a classic wall street scam where the bank presents complex terms in the guise of sophisticated banking but it's really just a sneaky way to screw the customer. It's always good to reduce the complexity in agreements because valuing options is very difficult without experience.