One problem is that to create something that's never been done before, and devote the required amount of resources to give it a passing shot at success, requires a certain level of naivete and hubris -- the exact qualities that good investors suppress. So for investors to take advantage of naive entrepreneurs by failing to give full disclosure up front and failing to "do unto them as you'd have others do unto you" is an especially sour pill. Think Grapes of Wrath: it's all just business until the lives of ordinary people are ruined.