Money remains cheap. Founding a company has become the stuff of entrepreneurial myth in which everyone ends up a billionaire. And the very gifts that enabled Rothenberg to start his fund and carve out a name for himself in the crowded valley venture scene — his youth, his Stanford and Harvard degrees, and his dense social network and splashy events — may have set the course for his fiasco.
Mike Rothenberg’s VC firm was young, splashy, and loaded with cash. Now it’s all come crashing down
Lauren Smiley

That is a short and sweet summary of what’s happening in high-tech investing and businesses. Lots of smooth talking and perks (i.e. parties and all) to attract cheap speculative money from people who don’t know shit what they are really investing in (and they don’t really care because jackpots are so frequent in this game).