There are a number of issues. 1. Don't be too surprised if the investors don't care. Because a) as long as they put a decent play together who cares? and b) wh

There are a number of issues. 1. Don't be too surprised if the investors don't care. Because a) as long as they put a decent play together who cares? and b) what are they going to do? sue them? that will make the investor look bad (they should have done DD) and give them a bad rep (who would ideally want to take investment from an investor who has a track record of suing you). 2. If the investor has a board position it might be ok. But you're probably under an NDA with the company. Disclosing this to the investor might be violating that NDA and you should consider this. I would probably mention in casually if you mention it at all. Like, you found it interesting how that play worked out and were a bit surprised that they could get funding using a publicly available demo. Probably I would make it part of a wider discussion or something...