I wonder whether fraudulent startups would actually fail due-diligence checks reliably. If it is well known that investors look for certain things, Elizabeth Ho

I wonder whether fraudulent startups would actually fail due-diligence checks reliably. If it is well known that investors look for certain things, Elizabeth Holmes would probably find a way to pass those checks, but well-intentioned founders might not put as much effort into compliance. From what I've seen of "compliance" paperwork in other industries, it sometimes just adds a ton of paperwork without actually preventing much fraud.