And this screwed the founders, how? This article is w.r.t. VC partners robbing their Limited Partners of the investment opportunity. And even at that, as many others have pointed out, it's somewhat deliberately slanderous.
AFAIK the founders were ok, but the folks that put in money into this VC's fund probably got screwed. So, how can you really trust these guys? I am sure buxfer wouldn't raise money from these guys whatever the terms.