Had it been going on behind the doors, the VCs would have pumped more money in to the scam. Since it became too public to hurt their brand they will no more fund it.
It happens all the time. The VCs know how their portfolio companies operate and still keep supporting them.
Quick reminder that we're on a VC board that has participated in this shell game; this fraud that has stolen money from naive people.
And before I get downvoted to oblivion or moderated by @dang I hope a few people read this comment and realize how much was stolen from you so the sand hill gang can play monopoly ... it was a lot.
yes its been my opinion for years that they are all crooks, the whole thing was made possible basically by quantitative easing. but I still find a lot of ridiculous foolishness posted here so I keep getting lured back.
It happens all the time. The VCs know how their portfolio companies operate and still keep supporting them.