VC-backed startups commit more fraud, and researchers think they know why
A new report from the U.K.’s Imperial College and France’s Emlyon Business School has mapped out the ways Silicon Valley’s VC-backed founders commit fraud — and the role investors play.
For the report, published online in June, researchers built a database of tech founders and companies who faced civil and criminal securities fraud prosecutions from the SEC and DOJ between 2000 and 2023.
Some famous cases of tech founders being convicted of fraud over the past few years include Frank’s Charlie Javice, Kalder’s Gökçe Güven, Terraform Labs’ Do Kwon, and GameOn’s Alexander and Valerie Lau Beckman.
All over X, the tech industry’s social network of choice, the topic of fraud and its gentler word “scam” are discussed, as people debate the limits of ambition and success.“Fraud is much more common and normalized in the startup world than we are ready to admit and accept,” Tim Weiss,...
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