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Are you saying the question doesn't apply to individuals? IMO it should probably even more so. I guess you have to be insanely rich to not actually care about
by nyrulez 8y ago
Are you saying the question doesn't apply to individuals? IMO it should probably even more so. I guess you have to be insanely rich to not actually care about a $xxM investment and related diligence.
And maybe it highlights an interesting lesson: it's much easier to hoodwink individual investors with charm and lies and Holmes nailed that part down to perfection.
- JumpCrisscross 8y ago> the question doesn't apply to individuals? Institutional investors have an institutionalised diligence process. Individual investors have their own diligence process. For some, it’s nothing more than a gut check. (Which is okay. There are plenty of successful companies that were founded on checks written on a gut feeling.) The bigger question is why a few of those people kept doubling down, to the point of attacking whistleblowers, after they had enough evidence it was a scam.
- icedchai 8y agoIn my experience, early stage technical due-diligence, especially by individuals, is non-existent. It is mostly based on personal reputation and connections.