Not unfair but turns it into more of a gamble for both sides.
You don’t know how much investment you’ll get until you know the numbers so how do you plan? Your company maybe worth more or less than the proposed investment ratio.
What if you only do 500k but strategically you could do with 10m because of a pivot? But now you’ve given away the equity so it’s harder to raise?
If the money is not needed, it becomes reserves for the corporation. Part of it might go into research.
Given the sector of this venture research of a very particular kind is required, so cushion money can be well allocated over time as needed for these research efforts.
What I want is security in a very specific form. Namely, that should things go well capital shall be plentiful and available. I do not want to worry about this.