4 ms·
Like open source not making all bugs shallow, start-up capitalism doesn't guarantee an accurate assessment.
by minikites 11y ago
Like open source not making all bugs shallow, start-up capitalism doesn't guarantee an accurate assessment.
- jonknee 11y agoAnd with this specific industry it would be cheaper to not do the deep assessment (medical compliance work is $$$ and you can only lose 1x your investment, if it is real you can make 100x).
- daveguy 11y agoBut if it is 100x more likely to not be real then it is worth investing the money to do the confirmation. This is true for medical and a lot more. Any company with a scientific foundation should have due diligence in the form of test accuracy, precision and reliability before a penny is invested. Anyone investing in a company where the technology is a scientific breakthrough should insist on confirmation tests. If those are forged then it becomes a criminal issue and you don't get to hide behind an officer level position. I think with this specific industry testing and compliance is more important in due diligence.
- jonknee 11y agoShe had an inside track to a lot of investors (and big name board members) which helped her immensely. Add on a nice demo and it's not hard to imagine. According to the WSJ she was childhood friends with Tim Draper's daughter and that's where she got her first round. http://www.wsj.com/articles/at-theranos-many-strategies-and-snags-1451259629?mod=e2fb http://www.wsj.com/articles/at-theranos-many-strategies-and-... > The first $1 million came from Tim Draper, a founder of Draper Fisher Jurvetson, through two of his funds. Ms. Holmes was a childhood friend of his daughter and came to him “with extraordinary energy and brilliance,” he says. At that point you have a very bright founder who interviews well and is backed by Draper. Everyone else assumes everyone else did their research.