Will Holmes have to face any consequences for her company providing false results and making false promises or can she just walk away with a bag of money?
Maybe she will run for president in a few years. She certainly has what it takes for a successful political career.
Investors agree to this for a few reasons. Firstly, it's a way for them to get a larger stake in the company. Secondly, it reduces the risk of the founders taking an early exit because they are strapped for cash. Finally, in a competitive deal (against other investors) it can be a way to sweeten the deal and get selected over the competition.
Investors don't want founders to be worrying about money - they want them to be focusing on their company.