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When this was floated on Twitter the other day, a number of prominent VCs chimed in to say that due diligence would see this coming a mile away.
by kristianc 8y ago
When this was floated on Twitter the other day, a number of prominent VCs chimed in to say that due diligence would see this coming a mile away.
- cowsandmilk 8y agoSure, their VC firms might do the due diligence, but Giga Entertainment (in the article) has a form D showing there were at least 179 accredited investors who acquired shares. There's a lot of people not doing due diligence that you can defraud.
- ian0 8y agoWell they are hardly going to say the opposite :P
- CPLX 8y agoVC's always say that. I'm sure some do more than superficial due diligence, sometimes, but honestly I don't really believe them, at least not in the early stages. For companies at those stages I wouldn't be surprised if more than cursory DD had a negative ROI anyways.
- FilterSweep 8y agoYep just look at Clinkle and (in particular) Theranos