Ressi had the cheek to make a little video where he personally delivers the documents EDF requested. He assures the audience that they contain no information that will identify "John Doe," the unnamed defendant in the suit. The smiling Ressi makes a thumbs-up gesture at the end, clearly mocking the litigants. It also suggests that such charming and friendly customer service can be yours if you pay to promote your fund on the site.

EDF's main factual quibble: The poster claimed to have worked with EDF on "several deals." EDF partner Mike DeVries says the company has never done multiple deals with the same entrepreneur.

Which just goes to show how tone-deaf EDF's legal adventure is. Most venture capitalists love to talk about how they keep entrepreneurs coming back for more. That EDF has never worked with the same entrepreneur twice is a far more damning admission — from the mouth of one of EDF's partners! — than anything written on TheFunded.com. Campbell and DeVries might be able to prove their point, at the cost of further damage to their firm's reputation.

Far better for EDF to have focused on the commenter's claim that EDF's deal terms are harsh. The PE Data Center, a research service, finds that EDF's terms, on balance, favor neither the investor nor the entrepreneur.