Hey VC's . . . Are You Still Buying Violin Memory $VMEM Trading Below Cash Value?

Why is Violin Memory $VMEM Trading Below Cash Value?
Will These VC Funds & Corporate Investors let this company fail?  
Windcrest, Juniper Networks, Toshiba, SAP Ventures, GE Capital, Highland Capital

I have often said the Venture Capital is a game of getting bigger and dumber money to follow the smart money.  This one takes the cake.  Violin Memory has priced its IPO of 18,000,000 shares at $9 per share for a value of $162 million. J.P. Morgan, Deutsche Bank Securities, EM Securities and BofA Merrill Lynch are underwriting the IPO, with Barclays serving as a joint book-running manager. Baird and Pacific Crest Securities are also co-managers. Based in Mountain View, Calif., Violin Memory, which is backed by SAP Ventures, Highland Capital Partners, Toshiba and Juniper Networks, is a provider of memory-based storage solutions.

Revenue Growth Looks Good But Spending Money For Sales Expansion

If you can dismiss their last quarter below guidance based on not closing a few Government contracts and their CTO leaving the story looks pretty interesting bringing on 30+ new customers in the quarter.  This chart looks horrible but it feels like an interesting public venture capital growth opportunity if you don't mind trying to catch a falling knife of a pretty good growth opportunity. 
The $VMEM IPO Priced at $9 and now it trading at $2.6?  
Is this an overreaction?

Here are Silicon Valley’s 10 most in-demand startups
Big Data Storage Companies:  Cloudera, Nimble Storage, Dropbox, Violin Memory

Violin Memory $VMEM currently has market cap of $100M and $NMBL $1.5B which is a difference of 15x. Nimble and Violin have similar tech, customers, industry, revenue, losses. Go figure Wall Street due your due diligence before investing.