Techstars and/or its affiliates would have taken equity in exchange for their services. They're part owners of the company as as such bear some measure of responsibility for its actions.
>> "Techstars doesn't market itself as some bastion of credibility to consumers."
Yes it does. It's consumers are small startups in need of seed money and strategic advice. Brand name is very important, and one of any incubator/accelerator's selling points. If a startup can associate itself with a highly regarded seed brand like YC or Andressen-Horowitz it makes its valuations much higher down the line. If Techstars becomes associated with shady ventures, it will hurt its ability to find willing participants.
Do they take a board seat? It's the responsibility of the board to make sure a company is shut down responsibly (once it's insolvent it needs to be run for the benefit of the debt holders FIRST, and part of that is not adding new liabilities).
Techstars and/or its affiliates would have taken equity in exchange for their services. They're part owners of the company as as such bear some measure of responsibility for its actions.
>> "Techstars doesn't market itself as some bastion of credibility to consumers."
Yes it does. It's consumers are small startups in need of seed money and strategic advice. Brand name is very important, and one of any incubator/accelerator's selling points. If a startup can associate itself with a highly regarded seed brand like YC or Andressen-Horowitz it makes its valuations much higher down the line. If Techstars becomes associated with shady ventures, it will hurt its ability to find willing participants.