[chrsstrm]

How do you know this doesn't happen all the time? Athletes and celebs get fleeced every single day but no one ever hears about it. No one in that position wants anyone to know they got taken. I can't imagine a VC would be any different. If you were a VC would you want anyone to know that the $X00,000 you put into an "early stage company" was actually spent on hookers and blow? Everyone knows there are shitty people out there but you were the one who gave them money. There is certainly a threshold where this turns into fraud and the authorities are called, but if you've lost a rounding error amount of money why would you risk the reputation hit over punishing a con artist? You blacklist the fraudster, sweep it under the rug, then hope your next investment covers the loss. What is surprising to me is that this is happening right out in the open all the time and no one is noticing, mainly because the fraudsters have CS degrees and know not to get too greedy or seem too incompetent. Everyone here knows you can get industry cred and a very nice salary for a couple years with nothing more than a clever slide deck.

[gowld]

In fact, it's in your best interest if the fraudster successfully cons your competition.

[selestify]

What's the reputation hit?

[gowld]

If you are supposedly a brilliant investor and some idiot kid stole $200K from you, you wouldn't tell anyone because it would ruin your reputation as a genius.

[stryk]

You have a point there the rich folks wouldn't want to be seen as gullible. Maybe I should have said "more reported cases of VCs being defrauded."

> "If you were a VC would you want anyone to know that the $X00,000 you put into an "early stage company" was actually spent on hookers and blow?"

Well, if I'm a venture capitalist investment type that probably means I have "fuck you money" so... yea, actually I would. If I spent 6 figures on coke and whores then I'm telling everybody.

[deathhand]

Those who flaunt don't have.