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Protect Your Interests Through Clarity
A carefully structured deal can offer significant benefits to founders, especially in challenging circumstances. Establishing protective agreements, such as side letters, is crucial when engaging with non-traditional investors who may not align with the founder's vision for the company's future. It is essential to ensure that voting rights and other critical decisions remain within the company's control, particularly when dealing with sophisticated investors who may have different priorities. Founders should recognize the importance of working with experienced venture capitalists who understand how to create founder-friendly terms that support long-term success, rather than risking the company in the hands of strategic investors lacking familiarity with early-stage ventures.