importantSYS.SOURCE: TechCrunch• 2026-07-31T19:00:00Z
VC-Backed Startups and Fraudulent Practices: Research Identifies Contributing Factors
A study reveals VC-backed startups are more prone to fraud due to unrealistic growth expectations and weak investor oversight, with researchers identifying three stages of fraudulent practices. The research also highlights how investors may inadvertently normalize fraud by continuing to fund founders with prior misconduct records.
New research from the U.K.’s Imperial College and France’s Emlyon Business School mapped out how Silicon Valley founders commit fraud — and the role investors play.
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