What is the point of no return in a VC investment process (other than the startup vanishing)? This was my answer to a Quora question I recently answered. Here's my thoughts.
When you lose faith in the founders. VC investing is based on a PPT deck and your faith that these founders can pull it off. You put money in, and encourage others to do the same. You work tirelessly with the founders to help them be successful. You celebrate their successes and commiserate with them when the inevitable failures occur. And you keep the faith in spite of what happens.
Why? because you are their biggest cheerleader and supporter that's why.
And that's why I am not a hands-off VC, working with all my portfolio companies as much as they need me to make them successful.
Have I ever lost faith in a founder? No…it's the hardest job in the world and as long as they work to make it happen, I'll be there for them.
Have I had failures? Sure. I've been through a miserable and expensive start up bankruptcy, had to shut down other startups, etc., but I still remain friends with my founders. That's the way VC life should be, at least in my world.
As my Chinese fortune cookie said the other day, "Your faith carries you through difficult times."
A VC in Vacationland 
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