Startups · Entrepreneurship

Should the partner at Rothenberg Ventures go to jail?

Ryan Thompson Commercial Real Estate Agent at Stidham Commercial

September 18th, 2016

This past month several reports were published on media outlets informing about Rothenberg Ventures, now called Frontier Tech, and the way the company managed capital provided by limited partners (aka investors). The VC, lead by Mike Rothenberg, currently has the Securities and Exchange Commission investigating how it managed its money. According to some articles published on Business Insider, the company was known for its extravagance: wine tours of Napa Valley, sports events in luxury boxes, a race car, and its Founder Field Day, where it rented the Giants stadium, AT&T Park, and treated startup founders to batting practice on the field and free massages. Is this type of behavior accepted by limited partners and would there be drastic measures used as a consequence?