I don't know whether it falls into sunken cost fallacy, but yes, VCs will go to great lengths to tank deals that don't fall within their expectation of return.

I don't know whether it falls into sunken cost fallacy, but yes, VCs will go to great lengths to tank deals that don't fall within their expectation of return. What's worse they usually succeed in either spoiling the deal, or getting a larger percentage that what was initially agreed since they have all the leverage in acquisition talks vs the founder.