(Bloomberg) -- Venture firm Tribe Capital wrote to a select group of its co-investors earlier this month with some bad news.

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Tribe was slashing its internal valuation of Canadian-British startup Invenia, on which it had bet $30 million, by 95%. Invenia co-founder and Chief Executive Officer Matthew Hudson had been “terminated” and a board-led investigation found he’d “secretly, systemically and repeatedly inflated the revenue and profitability of the company,” according to the memo, which was sent by Invenia board member and Tribe CEO Arjun Sethi.

Bloomberg News reviewed a copy of the memo, the contents and details of which, along with Hudson’s termination, haven’t previously been reported.

The markdown is the latest in a run of bad news for Tribe, the San Francisco-based firm started four years ago by former staff of Social Capital, Chamath Palihapitiya’s venture fund. Now Sethi and his team are re-evaluating several well-funded startups which, in Invenia’s case at least, Sethi said would have benefited from more oversight.

“Similar to a lot of other people, we probably need to rethink what it is to be a good board member,” Sethi, who said he joined the board in March, said in a phone interview. "We had to come in, and step up and be the adults.”

As several prominent startups have floundered — including crypto exchange FTX, which went bankrupt last month — venture investors have been reckoning with the repercussions of years of exuberant investment in emerging companies and their founders. Firms have slowed their pace of investing in recent months, offering stingier terms to founders while demanding greater transparency and rigor during due diligence to try and avoid additional fallout.