[ncm]

The essay neglects what happens to the 9 of 10 companies that don't, as far as the VCs are concerned, pan out. Closing them down means they have to give any remaining money back to the investors -- including their own fees they had already pocketed. Any dollar the company doesn't spend before it dies means money from the VC's own pocket.

The solution is to drain the company. The VCs install executives they owe favors to, at massively inflated salaries. They make the company hand over millions to "market research" and outsourced marketing companies. They make the company sign big service and equipment contracts. Each of these deals means a kickback or a favor owed. Best of all is if the money goes to one of the properties not being drained, or somebody the VC owes, or personally owns stock in.

It's no accident so many companies folded after buying unnecessary enterprise-grade Oracle and Vignette licenses.