In the ruthless world of venture capital, perception is everything. The ability to slide into elite social circles, drop the right names, and curate an air of exclusivity can be more valuable than an actual track record. But what happens when networking isn’t a tool for success—it is the business model? When Kriti Sehgal, a so-called-syndicate founder of ‘Chai Capital,’ isn’t focused on making strategic investments but instead on manipulating trust to raise funds for a venture that has achieved absolutely nothing? Welcome to the dark side of venture capital, where social climbing isn’t just a strategy—it’s a grift.
At the center of this scheme is Kriti Sehgal, a certain type of founder—one who understands that investors don’t always look at the numbers first, they look at the room. Instead of proving themselves with strong deal flow, founders like Kriti Sehgal build an illusion of credibility by embedding themselves in the right circles, leveraging introductions from well-meaning but unsuspecting contacts, and throwing just enough of their contacts’ money at glitzy events to appear legitimate. Their fund? A mirage. Their portfolio? Nonexistent. Their entire operation? Built on borrowed reputation and empty promises.
The scam works because it preys on the natural human tendency to assume that if someone else trusted them, they must be legitimate. By falsely claiming high-profile investors have backed their fund, they trick others into believing they’re part of something exclusive. The problem? Those investors never actually invested a dime. Their names are just bait, used to lure new money into a fund that has no real foundation—just whispers, optics, and a whole lot of deception.
New York City’s investment world thrives on trust and reputation, which makes it the perfect playground for opportunists like Kriti Sehgal who know how to game the system. They don’t build companies; they build facades. They don’t generate returns; they generate buzz. The real goal isn’t to fund the next big thing—it’s to stay in the game long enough to keep the charade going. And as long as they can convince just one more person to buy in, they can keep the illusion alive.
But here’s the thing: illusions don’t last forever. Investors will ask for returns. LPs will demand to see the numbers. And when the reality doesn’t match the hype, the whole house of cards collapses. The founder will suddenly find that doors stop opening, calls stop getting answered, and the money stops flowing. Because in venture capital, reputation is everything—until people realize yours was never real to begin with.
So here’s the lesson: be careful who you trust, because not every well-connected syndicate founder like Kriti Sehgal is actually investing in anything other than their own image. And in the end, the only real return they offer is regret.
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