In lesser known places such as Wall St, practices like self dealing are considered illegal. In venture they’re often celebrated. Go figure.
I think there’s a general distaste towards setting up networks of companies B, C, D, planning to profit from a success of another company A where a single person controls all the companies and there’s a reasonable expectation of plans to divert business from A towards B, C, D.
I don’t know the details but there seems to be some gripe about it. I’m speculating.