Silicon Valley’s most infamous catchphrase came courtesy of Facebook — “move fast and break things”. Yet it’s not just startups that need to make snap decisions but also the venture capital firms that back them.

VCs rarely have the luxury of dilly dallying around investment decisions. If a hot company is after funding, there will be cut-throat competition to provide it. And if a promising-but-unproven startup is after funding, it’s unlikely that they’ll have the runway to see through the six-month due diligence process that institutions like superannuation funds can require.

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That brings us to the case of StrongRoom AI.

The medtech startup, which makes software to replace antiquated paper-based means of tracking medication usage, earlier this month announced a $17 million round that would in part be used to finalise an acquisition announced last year. In less than two weeks, lead investor EVP reversed its commitment.

In a first for Australia’s startup sector, the VC called the police on its portfolio company in the very same month its investment in the company was announced. Capital Brief understands EVP asked StrongRoom AI for its cash back and called authorities after that request was denied.