I guess the argument is that a $250k warrant sitting in bankruptcy court is a potential liability that would turn off other investors. It's not something I've personally seen, but it doesn't really seem insurmountable for a hot startup. Losing a cofounder is a much more common and potentially painful problem.
The CEO's post on LinkedIn made it seem like they found it tough to get funding in general.
The CEO's post on LinkedIn made it seem like they found it tough to get funding in general.