Great article about the status of good governance with investors and startups.
The recent SEC decision to fine Theranos and it’s founders for fraud may or may not wake up the startup ecosystem (both founders and investors) only time will tell. But as the article points out, regardless of the outcome of the next SEC actions (the ICOs are in the cross-hair now) and Billions of dollars in losses, memories of bad intention-ed founders and deceptive pitches and promises will fade away, exuberance, fiction, deceit and fraud, will return. It’s human nature, it will not go away.
The take away from all this mess that founders need to realize (and hopefully the investors will smarten up a bit!) that deceiving investors, customers and public with a product or service that doesn’t work as advertised is not okay! You should not pretend a fiction to be a vision and as you go along the startup journey turn the fiction into a deceitful proposal! Sadly, investors are often complicit in this charade.