I think the main issue is that papers and studies with negative results are almost never published. There should be some procedure in place that ensures that papers will always be published no matter what is the result. This decision shouldn't be in the hands of the researchers and even less so on the investors.

Direct investor oversight over the research is very concerning. With the current method we can only blindly trust that scientist will be willing to sacrifice their career to publish a research that could potentially bury their investor. This makes absolutely no sense and will almost always end in conflict of interest.

I don't know the answer, but the current status quo is deeply flawed and needs to change quickly.