Indian founders should pay the price for frauds. Ashneer Grover driving his Ferrari bought from stolen money and becoming a hero on television has set up a very bad example for the youth.
You are giving half the picture here. Theranos lied about it's procedure being FDA approved and that put them in a tight spot with both investors and the government. If they had just lost all the investor money then she would not have gone to jail just like Adam Neumann never did for Wework.
And why do people care about cheating VCs? All there funds are either blood/oil money or money from billionaires and the 0.01% I ain't losing an ounce of sleep if every partner at Sequoia or similar VC fund starts to beg on the streets.
I don’t care how much VCs and LPs make, I care about India’s investment outlook, because we need it FPIs.
It’s doesn’t matter whose money was it. Having an ecosystem where so many founders are stealing money, cooking books and defrauding investors is not good for India’s business environment. Sequoia split itself in 3 entities and didn’t even let the SEA entity use its name, my guess is that recent controversies could have played a role in the decision.
Employees suffer too, they are laid off, their equity goes to zero and their years and effort are wasted.
I am glad this cleanup is happening and these thieves are being exposed.
Three words - rule of law. That is what differentiates the US and Europe from India.
Theranos also took time - any case of fraud needs time to get to the right place. We’ve seen billionaires in India getting convicted, and hopefully even corrupt founders will not be spared.
Ramalinga raju was punished once he admitted/allegations are proved. Any charges will take time to prove/disprove.
Private vs public company rules are different and regulator is not very friendly to private investments
Criminal breach of trust is usually heard upon even in case of individuals where fiduciary duty js present. It is under IPC and not any corporate law to be different for public vs private companies.
Which startups founders and their partners behave like those of Theranos - product doesn't work, founder avoids solving core issue and sells his dream, raises funds, works on logos/websites. Also, founder's partner supports all shenanigans.
Last 2 weeks have been rife with such news.
I can't seem to recall when India crashed the entire global economy while selling scammy financial products to uninfo...
