It seems there's an attitude that startups that are "disrupting" don't play by the same rules as "traditional" businesses. (See the many discussions re Uber and AirBnB as they relate to local regulations) Business can be a very scary place, with risk - even when it has nothing to do with your company, PR association can be a killer. Situations like this are careful reminders that it takes more than a MacBook Air, 5 Hour Energy, and six weeks at an incubator desk to launch a successful business.