When you're a founder, it's way easier to get better terms from someone who's passed than a billion dollar company. This is one advantage of trying to raise money from people that have a track record of public companies. Some investors optimize for your company's going to sell for 10 or $20 million and so they structure their documents around that kind of outcome.
Dalton Caldwell and Michael Seibel talk about investor terms and incentives.
To create Rookies Mistakes we asked YC founders: Is there a simple fact you wish you knew when you started your company or a rookie mistake you wish you could take back?
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