As an attorney, I have witnessed numerous investors who easily fell in love with enthusiastic founders and, because of that, conducted almost zero due diligence before investing in their companies. It is easier than you think to lure investors into investing in or acquiring your company. Delve, Frank, Theranos, and WeWork are some that come to mind, but there are still numerous startups and private companies that believe in "fake it till you make it" and lie and hide information from investors, simply because their founders have a persuasive, dominant personality.

If investors are lucky enough, this type of company will be sold or go public and they can cash out. If not, they will write it down and move on.

But getting back to the present day: the biggest one right now is OpenAI, a company that has become a systemic risk to many large public companies, private companies, VCs, PEs, and banks.