Trading ability to cut your losses at 50% of typical investment for inevitability of being cut off at 50% of a hugely successful return will balance out.
However, a hugely successful investment will bail sooner than 50% is reached. Thus the skew is in favor of startup.
Of course the actual negotiation may not take math into account. :-)
However, a hugely successful investment will bail sooner than 50% is reached. Thus the skew is in favor of startup.
Of course the actual negotiation may not take math into account. :-)