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Why don't early investors put clauses in their investment to protect themselves against being screwed over by later investors? It seems like an obvious thing to ask for if you're giving someone a lot of money, so I'm assuming there must be a very good reason it's not done.

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Early investors (the main ones at least) usually get pro-rate rights - which means you can invest in later rounds to maintain your ownership percentage (i.e a later round dilutes your ownership, so you invest a bit until the ownership stays the same).

But the pref stack always favors later investors, partly because that's just the way it's always been, and if you try to change that now no one will take your money, and later investors will not want to invest in a company unless they get the senior liquidity pref.

The VCs should, they're called anti-dilution measures

Its less financially/legally saavy parties like angel investors and early employees who (sometimes) get screwed out of valuation

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