I think it’s likely his start-up was funded by venture capitalists.
Even JP Morgan was defrauded for $175 million recently by a start-up, “Frank”, that created bogus accounts to make it look like it had a larger customer base, the SEC has filed a fraud case.
I’m not suggesting his company was fraudulent only that it’s easy enough.
The money thrown at tech start ups is astronomical and with little oversight.
His start up salary likely legitimately funds a lavish lifestyle and his home/office in Emeryville. Jmo
Edited to add: many tech employees work from home, not having traffic to his home/office doesn’t mean he doesn’t have employees and a viable business.
The End of Faking It in Silicon Valley
BBM
Between 2012 and 2021, funding to tech start-ups in the United States jumped eightfold to
$344 billion, according to PitchBook, which tracks start-ups.
In the past, the venture capital investors who backed start-ups were reluctant to pursue legal action when they were duped. The companies were small, with few assets to recover, and going after a founder would hurt the investors’ reputations.
IRL, a messaging app that investors valued at $1 billion, is being investigated by the Securities and Exchange Commission for allegedly misleading investors about how many users it had,
according to reporting from The Information.
Rumby, a laundry delivery start-up in Ohio, allegedly
fabricated a story of financial success to secure funding, which its founder used to buy himself a
$1.7 million home, according to a lawsuit from one of its investors.
Start-ups have many of the conditions most associated with fraud, Mr. Dyck said. They tend to employ novel business models, their founders often have significant control and their backers do not always enforce strict oversight. It is a situation that’s ripe for bending the rules