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VCs are not banks and are not staffed like banks, and they don't do DD like banks. I've been in the weeds in six VC rounds and through an IPO, you'll be incredi
by tomnipotent 8y ago
VCs are not banks and are not staffed like banks, and they don't do DD like banks. I've been in the weeds in six VC rounds and through an IPO, you'll be incredibly disappointed what passes for DD for VCs.
- jacquesm 8y ago> you'll be incredibly disappointed what passes for DD for VCs. There are lots of VCs, some are better at this than others, some really suck. On the whole though they tend to do their homework at least on the commercial front and a competitor with a feature-for-feature identical offering would have most likely been spotted even at the 'not so good ones', irrespective of whether or not the API docs were made public. The interesting questions to me are: - what was the exact timeline? - was an (ex) employee of the company involved in the copying? - is Otonomo itself aware of the fact that they have this sitting on their website? - How far down does it go? Is it just the API documentation, or also the underlying code?
- sgustard 8y agoVCs love to tout how they reject 99.9% of their pitches. What's the competitive advantage for them to fund an investment with minimal technical review? Wouldn't avoiding the next Theranos be worth it?
- manigandham 8y agoNo. VC is about numbers, getting into as many deals as possible because a very small number return enough to pay for the fund. 99% of deals are expected to fail. In-depth due diligence costs too and would take away money that could be better spent on just another deal.