There is no such thing as loyalty in the venture capital business. The venture capitalists are working to protect their own investments. The pressure is large. They have to do everything in their power to get the maximum return on their investment. Most startups are a loss. More than 95% companies shut down. Once a startup takes money from an accredited investor, the money always has to be raised by accredited investors only. Therefore, the pressure is large. Either the startup survives, or its shut down. This is not a good moment for anyone, including the founders, employees and partners. The VCs appoint middleman to do the work that they dont want to do themselves, if they are active in search for the next startups. The middleman do everything that protects them from law. The VC are responsible for millions of dollars and a direct law suite could be dangerous to their careers. Because of Twitter, this whole system needs to be reworked because the fact is many VCs and angel investors are pure transparent to founders and entrepreneurs of successful startups. There are many cases where the middleman are serving multiple VCs. Because of this, information leaks out. This could be damaging for a startup if the competition VC finds out some dangerous information regarding their investment. There are other cases where certain schools like Stanford and MIT put such a deep stamp on their entrepreneurs, that sometimes their loyalty is questionable in other situations.