Technology
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The good old "make a tech startup with a gimmicky product idea, get millions in VC for some reason, create an underwhelming product that was never meant to be any good, then get bought up by a big company that will sit on the IP and never do anything with it" strategy of making money.
I think you overestimate the amount of knowledge, instinct and just plain research these VC people put on investments (I guess when you have money, if one of 10 hit you made it anyway?)
When the game Pokemon Go came out, Nintendo's stock skyrocketed to the point Nintendo had to come out and publicly explain they had sold the IP, were not behind the game and made no money from it... "Investors" thought otherwise and started pouring money literally at the wrong company
There are plenty of similar examples...
In this case I think the VC folks probably got a fat return on the selloff. Not sure what the company who bought their asset got out of it though