What to watch for when getting funding

My non-tech startup is about to get our first offer for funding. We are a pre-revenue company that requires expensive capital equipment before we can ever make a sale. In total, we are asking for ~$ 4 million. The company we are expecting an offer from told me a few times to not be shocked at the equity they are asking for. I expressed our interest in retaining at least 51%, but that seems unlikely based on his response.

To make things more complicated, this company is partially owned (rumored to be 40%) by our primary competitor. Since we will likely have to give up a controlling interest, what should we be looking out for to protect ourselves and the business? Any help, advice, and guidance from someone who has had to give up controlling interest would be appreciated.

submitted by /u/DrtyMikeandTheBoys
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