Practical Nerds

019⎢Behind the scenes war stories: Where Constru-Tech met unethical behaviors over the years⎢And why we passed


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This week has some behind the scenes war stories:

  • Questionable behaviors in Constru-Tech deals that Patric and Shub have seen over the years, and led them to pass on those deals
  • Founders botching revenue recognition and other cases of book-cooking
  • Founders setting up hidden corporate structures which could lead to personal gains
  • VC's blocking deals and making deals for personal enrichment at expense of the startup or their partners
  • Straight up, Board members charged with bribery accusations

  • Patric and Shub discuss hidden stories of questionable behaviors that have led investors to walk away from deals in the construction tech sector. Examples include a botched funding round due to problematic revenue recognition, a VC blocking an outside investment in one company to force a quid pro quo investment in another company they partially owned, vague accusations of "book cooking" by a prominent founder's past investors, a founder secretly enriching themselves through an offshore subsidiary, bribery accusations against a board member, and sibling VCs scheming to promote one of themselves through a shaky deal. These stories demonstrate issues around greed, self-enrichment, abuse of power, and deception that can undermine deals even at the last minute. The podcast covers ways founders can safeguard their companies and partnerships to avoid these pitfalls.

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    Practical NerdsBy Patric Hellermann