Sounds bad. Remember, a VC is just someone who has convinced someone else to invest their money for them. Most money is invested wisely with smart, upstanding

Sounds bad. Remember, a VC is just someone who has convinced someone else to invest their money for them. Most money is invested wisely with smart, upstanding VCs, but bottom-feeding VCs seem to be able to find money to invest too. Because there's so little regulation, the dodgiest VCs are worse than, say, the dodgiest real-estate agents. The victims in this situation are the VC's LPs, whose money may be ending up mostly in the partner's pockets rather than wisely invested, and the employees who work at these doomed companies. The LPs are in a position to complain and/or sue, but they may not be actively managing their money. In that case, their money will just go on hurting people. Sad. Having capital turns out to be a big responsibility. It can do a lot of good if well-invested, or a lot of harm if badly invested.