The venture campitalists are in on the grift too; They follow the FTX playbook fairly often; It's just legal. They'll invest in a series of companies, as those

The venture campitalists are in on the grift too; They follow the FTX playbook fairly often; It's just legal. They'll invest in a series of companies, as those companies are failing, they'll buy them out with one of their successful companies (possibly a later stage investment, cheaper in a less costly market) then the once successful company also can't survive. On paper, it looks like they have 3-4 successes to balance out their one failure. For their personal portfolio, it's also great too, and helps them raise more money. If they're really successful, they'll oust the CEO of one of the once successful but in down market companies, really boost their shares; and if lucky that investment will exit.