> So the investors just accepted to lose $800k

$500k came from a fund General Catalyst set up specifically to encourage startups to build new businesses that integrate with Stripe. [0]

The goal for the money was to enrich the Stripe ecosystem. Not generating returns for investors.

If the money came from a regular fund without the Stripe affiliation, General Catalyst 100% would not have accepted the $800k loss.

[0] https://www.prnewswire.com/news-releases/general-catalyst-in...