Fancy titles, but no worker bees...a red flag to an investor

Let's see, you have five persons in your start-up, and three of them are VPs.  Yikes, I actually saw this once.  So, who's doing the real work here?  This looks really bad from the outside, especially to a prospective investor, and indicates naive management.  In a start-up, one should only have a fancy title if (a) s/he has earned it from previous experience at that level, or (b) s/he needs it to convey decision-making authority when talking to customers, suppliers, and partners.  Oh, and if someone will join your company only if he gets the title he wants, kindly show him the door.  His priorities likely are not in making the company successful.