All the criticisms in and under your post are valid, but should be taken in context. If you haven't started a company and raised money for it, I can tell you there are a staggering number of ways to make mistakes.

I asked investors for references and actually called them before signing, but at the same time no doubt made mistakes that others wouldn't have.

The takeaway should not be these these guys were stupid at finance, rather that all critical decisions should be vetted by an adviser with expertise in that area.