> Now, the company is slowly bleeding to death.

There are thousands of companies where the shady practices are rewarded, the companies thrive and make money for the investors. So the investors are incentivized to reward this behavior just on the chance that they are rewarded back.

Whistleblowing sinks those chances and the investors and VCs know it. It doesn' just take away the money, it even takes away the plausible deniability. They put a lot of effort to absolutely punish any whistleblower to discourage the rest. Anything for a dollar. and this is probably all you'll ever need to know about almost every VC out there. Beyond the witty "I'm rich so I'm smart" blog posts and tweets, they're very much just the "anything for a dollar" type of people.