Yes portfolio companies can offer services to each other for commercial rates. I think the issue here might be outlined here: "They charged over half of the tot

Yes portfolio companies can offer services to each other for commercial rates. I think the issue here might be outlined here: "They charged over half of the total “investment”, hundreds of thousands of dollars, for an app one guy could have built in 2 months." If they are being sold a service for an inflated price then there could be grounds for charges. This could be a way to move money from one company to another. One fund could be doing very well and the VC might be in carry whilst another is doing poorly. So if you're the VC you'd want to move money into the more successful fund to generate better returns and higher carry (i.e. 20% of the profits after fees).