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What’s the math on hiring a college kid to sanity check the viewer numbers before wiring the money? It’s not math. It’s a policy of deliberate ignorance. Becaus
by elliekelly 5y ago
What’s the math on hiring a college kid to sanity check the viewer numbers before wiring the money? It’s not math. It’s a policy of deliberate ignorance. Because the dirty secret of VCs is that a not insignificant portion of their value-add is building the hype train and betting the business will eventually catch up to it.
- manigandham 5y agoIt’s not that simple because of the quantity and velocity of the deal flow. In depth due diligence can take weeks and considering how rare these situations are, it’s usually not worth possibly missing a deal. It also depends on getting accurate information in the first place and a private company can hide a lot. There’s also the condition that VCs might have found out and passed but won’t really make much noise about it. They usually don’t have much to gain in calling out “bad” deals and can even hurt them in the future so they stay quiet, for better or worse.