They get paid! Sounds to me like a rather obvious investment scam. Convince a few investors you've got an amazing idea, then gobble up their money in salaries and bonuses and 'corporate expenses'. When the company goes bust it's no skin off your nose, you keep the million dollar house and car, and go form another venture startup in a totally field and convince more investors they'll make a killing if they just put up the $30 million startup costs, and then another $25 million RnD, and of course $30 million advertising...