Investors rarely do a crazy DD, especially technical DD. First, it is expensive and second which is most important, it takes time. When a company is fundraisi

Investors rarely do a crazy DD, especially technical DD. First, it is expensive and second which is most important, it takes time. When a company is fundraising and investor likes a pitch they prefer to move fast in fear of missing out. Generally, all the dead bodies are found during the first board meeting. It is not that much different from just buying stock. No one actually has an idea if any of public companies are cooking books etc. You just wake one day and it is a huge write down.