After 25 years in venture capital, I first heard the term “investment ask” five years ago, when working in Nova Scotia.

I didn’t like it at all! And I really don’t like the practice of asking entrepreneurs to pay to pitch.

One important thing I learned during all those years is a good deal requires equal parties. Entrepreneurs and investors are of equal importance to the deal and to each other. If anyone feels treated any other way than equally, it will lead to friction, and the deal will be harmed.

You may think the investor always has the upper hand, but you’re wrong. The investor and founder need each other equally. The entrepreneur needs the funder’s money, experience and network to build his or her company. To make money, the investor needs the initiative, creativity and stamina of the entrepreneur.

Investors -- venture capitalists and angels -- are not in the business of helping entrepreneurs or “sponsoring” companies. They aim to make money, and for that they need companies led by people who give practically everything they have, both in money and dedication. Funders back you not to help you but to create value. And if it works out, everybody benefits – entrepreneurs, investors, other stakeholders and society as a whole.

But let’s be honest: investors do all that to make money.

The “investment ask” introduces a certain inequality. Asking implies that one party is doing the other a favour, whereas really all that each party is doing is trying to get a good deal. The amount of the investment should be determined by the financing needs of the company, not by an “ask”. This amount should reflect the value and quality of the proposal and the need to preserve the founders’ interest in the company through future financing rounds. Don’t mistake that last element for a favour. It’s in all stakeholders’ interests that founders maintain substantial shareholdings so they continue to build a good company. It’s just like an Employee Stock Option Plan; it’s not a favour but a necessary element of a good deal.

Investors look 24/7 for good deals because dealflow is their lifeline. Entrepreneurs with the right deal should not feel they are “asking” for anything. They’re proposing a deal that could benefit all parties.

And they shouldn’t have to pay to pitch. That practice eradicates equality before the parties even talk about the “investment ask”. You’re off on the wrong foot, to the determent of investors and entrepreneurs.

As an investor, your goal is to see and have access to all the good deals that are out there. You wouldn’t create limitations that prevent you from reaching potential winners. Such limitations mean that you fail at an important part of your job.

Therefore, ask an investor the question: What do you prefer, access to any deal or just the ones that come with a dinner?

The early-stage investment landscape has changed over the last decade. Specialized early-stage funds and professional angels are co-investing far more than they did before. Funders co-invest on equal conditions. Paying to pitch and charging de facto closing fees are a big disturbance and prevent parties from joining a deal. As a business model, it acts against the development of the ecosystem.

Atlantic Canada’s startup ecosystem has evolved into one that produces winners and good deals, attracting VCs and angels alike, both from within and outside the region. We should encourage all parties to evaluate their business models to ensure they are in line with the needs and circumstances of the market.