Due Diligence

Basically, it says Nishan's founder is suing Lightspeed and Comventures for cheating him out of his fair share. While I'm quite sure that has happened in the venture world, this probably isn't the right example.

I did a quick check on VentureSource, a database that tracks venture capital deals. If the article is right and $5.5 million in bridges went in to the company, then the total venture money into the company is $85.5 million. According to VentureSource the company sold for $83 million (the article says $90 million).

Whether $83 or $90 million, employees got an average of $50K and the founder got almost a million dollars. This happened on an investment in which the investors either lost money or barely broke even. As described, this is not a very persuasive case of venture investors cheating some poor founder out of his rightful money.