[2] According to the U.S. Securities and Exchange Commission, Mike Rothenberg "orchestrated a years-long, massive fraud and posed a substantial risk of loss to investors, with $18.8 million misappropriated.
[12] On November 4, 2013, data research company Mattermark awarded Rothenberg Ventures' portfolio its highest average ranking.
[13] Rothenberg Ventures built the world's first virtual-reality startup accelerator, River,[14] and has invested in 30-plus VR companies to date, including AltSpaceVR, Fove, and Matterport.
[16] Hundreds of founders were selected, given customized schedules, and attended fireside chats by industry luminaries in Rothenberg Venture's network.
[30] In July 2016, the U.S. Securities and Exchange Commission (SEC) opened an investigation into Rothenberg Ventures' financial management practices, centering on allegations of excessive executive compensation without investors' knowledge.
[22][31][35] River Studios' first contract was with Birchbox, and the company has subsequently created VR content for Björk, Coldplay, the Denver Broncos, and the Sacramento Kings.
[22][31][33] In October 2016, San Francisco's Planning Department received notification that the firm was operating from a building not properly permitted for use as general office space.
[38] In late 2016, Rothenberg Ventures was mentioned in year-end stories about corporate crises by Bloomberg Businessweek,[39] Forbes,[40] and Business Insider.
[41] in 2018, Rothenberg filed a lawsuit against Silicon Valley Bank, which accuses them of negligence, deceit, fraud, and unfair business practices.
The suit, which seeks a jury trial, alleges the bank "created the false appearance that the management company and Mr. Rothenberg had wrongfully misappropriated millions in investor funds.
As part of the settlement, Rothenberg does not admit guilt but has agreed to be barred from the brokerage and investment advisory business with a right to reapply after five years.
Rothenberg was found to have funneled millions of dollars from investors to support his flashy lifestyle, building a race car team, and to fund a virtual reality studio.