I don't doubt the existence of clueless VCs who throw their money around, but that's no different from any other form of business. They'll soon lose that money.
The problem is that, given the anecdote of another commenter with intimate knowledge of the situation, Michael's explanation doesn't match reality. I suspect cases like this often defy simple rationalization, but as outsiders we don't have the facts to correct our theories.
The problem is that, given the anecdote of another commenter with intimate knowledge of the situation, Michael's explanation doesn't match reality. I suspect cases like this often defy simple rationalization, but as outsiders we don't have the facts to correct our theories.