When a VC funded biz shuts down are the VCs responsible to the remaining staff?

When a company goes bankrupt, aren't employees the last in-line when the debts get settled?

Employees should be aware of this, but more important, a good CEO should take he precautions to make his employees aware of these situations.

There was a start-up I know of that every weekly meeting would lay out the numbers for ALL the employees. How much was in the bank, how much was expected to be coming in, and how much was expected to go out.

The employees new 2 weeks out when the company was unable to pay its bills. The employees were told that unless something changed with x amount of time, their wouldn't be enough money for payroll at week 'y'.

Knowing what was expected to be coming in over the following 'z' months, a few employees (mostly upper management I believe) offered to be owed payroll until the company could pay.

The company made it through that rough patch and was acquired a few years later.

The point is, that VC's aren't responsible for payroll, the business is. Employees should be aware of the environment in which they are working, and the CEO should make sure his employees are taken care of to the best of their ability.