VC Makes Money The Old Fashioned Way: Stealing It
from the ah,-yes,-that's-how-you-do-it dept
Apparently actually investing in good companies, collecting management fees and hoping to lead a portfolio company to a big boom was too much for the Acorn Technology Fund. A story has come out saying that managers of the fund diverted cash through a shell corporation they had created for the purpose. There have been a bunch of stories about startups skimming off the top from their VC investors, but this is one of the first cases I've heard about of VCs doing the same to their own investors (including, in this case, an SBIC investment from the government).