What I have heard and seems was considered "common knowledge" about a year ago was that the founder embezzled the money. His VCs considered suing, but decided it was just too messy. I'm not joking, something about some seriously extravagant vacations and a house renovation all paid right out of the company's bank account.
Very early in the life of the company they have undertaken some pretty dishonest accounting of their revenues, net retention and other key metrics. The CFO resigned after the first reporting quarter.
I have a strong feeling there is more to this character than just the recycling of virtue filled business models.