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If you believe this company is an outright fraud (I don’t have an opinion) “shrug its crypto” is a horrendous defense for the funds backing it. At a bare minim
by kasey_junk 4y ago
If you believe this company is an outright fraud (I don’t have an opinion) “shrug its crypto” is a horrendous defense for the funds backing it.
At a bare minimum they should be doing due diligence for their own investors to prevent losses if not the higher standard of being a good citizen and shutting down the fraud.
We would not think it’s ok for a fund backing pharma startups to give cash to Avon Barksdale…
- tptacek 4y agoI think I'm saying that YC by design funds companies at a point where it's too early to reliably determine whether they're an outright fraud. And YC can't shut down anything; they invest relatively little money and take zero control over their portfolio companies. The best they can do is performatively kick companies out of the program, so they can't access Bookface or whatever.
- kasey_junk 4y agoI don’t think public disavowals by early investors are performative. I think that would go a long way to limiting the damage actually.
- tptacek 4y agoFair enough. I mean, it's performative by definition! This company appears dead in the water. But you're right, sometimes the performance itself has value.
- akerl_ 4y agoLet’s be honest, a VC fund would be backing Marlo, he’s got way more startup energy.