The VCs are willingly fleeced - they aren't about companies generating revenue either. Hard to feel sorry for VCs when they're playing the same game Kite is - just hyping the market and flipping an asset, hoping the music doesn't stop before they get out.
Because the incident should be fresh and impactful enough to remember, from my point of view it almost reach levels as bad as Sourceforge adware injection in open source software installers.
For a recap for people who weren't in the industry or have short memory.
Kite took ownership of some popular code editor plugins and injected some adware/tracking code.
Good riddance to bad rubbish