[bduerst]

I doubt it's fraud-level, but it is cashing in on the hype-machine in the silicon valley. If there wasn't a market for this, then we wouldn't be reading this article.

VCs do due diligence - success for them isn't just funding a real business, but more along the lines of cashing out at the right moment.

[pron]

One thing to realize is that the "hype-machine" is a cornerstone of modern, capitalist, economy. So much in the economy is built around expectations, so I wouldn't single out silicon valley. Silicon valley, since it occupies the innovation/novelty niche, is just a exaggerated, caricaturized, even (not necessarily in a bad way), microcosm for the entire capitalist economy.