The investors dodged a bullet not because this founder lacked the mental fortitude to face challenges but because he did their due diligence for them and was ho

The investors dodged a bullet not because this founder lacked the mental fortitude to face challenges but because he did their due diligence for them and was honest enough to pull out of the financing once he discovered his concept was likely not viable. The market for seed-stage investments is very frothy today. Lots of investors are spraying and praying, and as a result often lack domain expertise in the areas in which they're investing. Founder pedigree and social proof weigh heavily in what seed stage investors consider "due diligence."