How Founders Take Advantage of VCs: Unethical Practices in Startup Fundraising

Jason Lemkin examines common ways founders exploit venture capitalists, including mishandling investor payouts in acquisitions, manipulating cap tables, hiding secondary liquidity, and fabricating financial metrics. The article identifies patterns of founder misconduct ranging from small-scale infractions to large-round 'quiet quitting,' and suggests board representation as a mitigation strategy.