This is well known in cybersecurity circles. I mentioned here[1] a couple years back that I know CISOs who've had to clean up big messes because their predecessor was on the Cyberstarts payroll, but on the bright side I also know a couple of those predecessors who were fired for it.
Cyberstarts is the most blatant offender, but to be fair, VC has turned into the next rung on the career ladder for CIOs/CISOs, whose role is otherwise generally terminal (unlike e.g. COO or CMO). So a lot of deals get done now just on giving CISOs a path into VC. It's more subtle than Gili's way, and just as effective.
1. https://news.ycombinator.com/item?id=40487846