3 ms·

What? Maybe investors think that they have the right to everything but it’s naive to think the bullshiting happens to customers and employees but magically stop

• hn_throwaway_99 5y ago
  I've been in many due diligence calls for many different companies. Any VC that knows what they're doing will demand hard, objective answers to things that can't be "fuzzed": 1. What is trailing, or contracted, revenue? There is no gray area here. You're either lying or you're not, and lying is committing fraud (as Theranos appears to have done in this case). And no company I've previously worked at has lied about this in my experience. 2. What are the shipping capabilities of your product? Potentially some opportunity for "fluff" depending on how this is answered, but Theranos unambiguously lied here. Again, have never seen plain outright lying in a company I've worked at. This idea that there is just a ton of lying going on with investors in SV is bullshit. The reason cases like Theranos are pretty extraordinary is they're quite rare.