I thought her business is pretty much funded by her. I have worked with a few self-funded high tech start-ups and frankly late payroll does happen. Of course that was in the good old days (i.e. before this year) when everyone was was willing to suffer through it to get points or shares.
Honestly, though I do think this is just her not paying attention. It would be pretty funny to see have go before a VC. I am sure she would give her pitch and half the guys wouldn't have heard a thing.:)