Investor are short-sighted when they steal all the money from startup employees. Equity used to be the one way that startups could compete for talent but the more the word gets out that it's a scam the less that startups are able to compete.
The funny thing that all this might be funded by the big corps who don't really need any startups and competitors around: it's easier to invest 20-30 billions into destroying the reputation of the startup concept, than to continue buying them at 1-15 billions each.