For both majority and minority investors, putting capital into a business is only step one. The real challenge is protecting the investment without disrupting the company’s trajectory. In growth environments, investors are facing risks from poor structure, misalignment between shareholders, and unclear accountability.
That’s why investor protection needs to be more than a clause in a contract. It needs to be a system.
Obvious advice investors are getting is ensuring strong legal documents which, indeed, are the foundation of good investing. From shareholder agreements to board rights, well-drafted documents set the terms of engagement and provide critical protections — anti-dilution clauses, exit rights, financial disclosures, veto powers.
The reality is: the biggest risks don’t show up in contracts. They show up in people.
Many investors look to appoint their own “key people” or trusted management into a company to safeguard their position. This is an appealing solution which we also advocate at Vault, but you must be very careful:
→ alignment issues: Investor-appointed key people may not share founder’s vision — which can stall momentum or spark internal tension.
→ cost burden: Startups don’t always have capital to fund expensive professionals on payroll.
→ unclear accountability: Who do these individuals truly report to — the CEO? The board? The investor? Lack of clarity can erode trust on all sides.
The only answer to these concerns is that investor-appointed “key people” should also be the “right people”. They are required the highest standard of impartiality, collaboration and focus. They should be able to add value to the company and stick strictly to their mandate. These are people who follow only a system and it’s almost impossible to sway them.
At Vault, we help structure investor protection that works with the business, not against it. We don’t just drop in a manager—we embed operational clarity, governance best practices, and shared incentives that keep everyone moving in the same direction.
We understand the tension — and we work on both sides of the table to resolve it. Our approach ensures that the capital is protected, the company is moving, and the structure is built for long-term performance.
Protecting your investment shouldn’t cost you the company.