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> Betsy DeVos and Rupert Murdoch lost their millions precisely because there was no mechanism to discover the "counterargument" against Theranos. They lost mon
by thesausageking 6y ago
> Betsy DeVos and Rupert Murdoch lost their millions precisely because there was no mechanism to discover the "counterargument" against Theranos.
They lost money because they didn't do any diligence. Theranos pitched every major VC firm and all of them passed because when they researched the team and technology they realized it wasn't what they were claiming it was.
- bhupy 6y agoCorrect, you're not actually refuting anything I said. It's much more difficult to do diligence on a private firm than it is a public firm (due to SEC requirements). That's my entire point. In the "what if Theranos was a SPAC" counter-factual, it's just as equally likely that dumb money never makes its way to Theranos in the first place because institutional short sellers have a vested interest in turning the logs over and kicking the tires long before Fortune magazine runs cult-of-personality profiles on the founder.