If you look at Theranos, the major funding sources were not traditional vcs. Total investment: $724m, approx. Waltons: $150m, Rupert Murdoch: $121m, Cox famil

If you look at Theranos, the major funding sources were not traditional vcs. Total investment: $724m, approx. Waltons: $150m, Rupert Murdoch: $121m, Cox family: $100m, DeVos family: $100m, Carlos Slim: $30m, etc. I count at least $559m from non-vc sources [1]. And then you have hedge funds like Partner Fund Management: $96m. Whether you consider them a traditional vc or not, per their lawsuit, Theranos faked blood test results. I guess you can blame them, but I'm not sure how much duedil is going to catch wholesale fraud. MedVenture, a vc, did due diligence and didn't invest. GV turned them down. VCs certainly didn't make Walgreens not do duedil before partnering with Theranos. etc. I don't think Theranos is proof that vcs are, as a class, incompetent and just want a story. [1] https://www.wsj.com/articles/theranos-cost-business-and-government-leaders-more-than-600-million-1525392082 https://www.wsj.com/articles/theranos-cost-business-and-gove...