2 ms·
Is this a joke? First WSJ and now a16z. I figured due diligence was one of their core competencies. Now, I'm not so sure.
by bpiche 5y ago
Is this a joke? First WSJ and now a16z. I figured due diligence was one of their core competencies. Now, I'm not so sure.
- gumby 5y agowsj is pretty shallow on topics like these. As for a16z: their job is not to do great diligence; it's to take their LP's money and do a spray and pray (this is the case for pretty much any mega VC fund; DD is too hard). Instead they do sector diligence; when they find one they like they pump it up to attract deal flow. Hence Levine's semi-jocular suggestion that a16z be considered a media company with an investment arm. They have $2B allocated to crypto deals. They like to take both coins and equity.
- bpiche 5y agoWow, that's an interesting analysis. Do you maybe mean that they have so much influence that they can attract other firms to an entire sector just by being a prime mover in that 'media' space? Even if it's all crap. I wonder how long this house of cards can stand.