VC's do, Paul Graham talks about this, they often face vexatious lawsuits, they just have to disclose the suit instead of hiding it and let the VC discover it.

VC's do, Paul Graham talks about this, they often face vexatious lawsuits, they just have to disclose the suit instead of hiding it and let the VC discover it. And many VC's are timid, and don't have the vision the industry lionizes, because it's an elitist characteristic.