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> When the VCs really want something, due diligence, especially the sort you mention, and any sort of business plan / model / etc goes out the window. Indeed.
by jgalt212 4y ago
> When the VCs really want something, due diligence, especially the sort you mention, and any sort of business plan / model / etc goes out the window.
Indeed. Post FTX, Sequoia not only scrubbed the hagiography of SBF from their site, they also scrubbed a story about how they went from meeting to funding company in 48 hours. Not sure how much due diligence you can do in that time frame.
- rexreed 4y agoOh Sequoia. The company that put $41M in a single seed round into a company that did... nothing: https://www.businessinsider.com/how-the--did-color-raise-a-crazy-41-million-for-its-first-round-2011-3 https://www.businessinsider.com/how-the--did-color-raise-a-c...
- hunterhod 4y agoHmm, the article seems to suggest that perhaps Bain put up the majority of that round.
- rexreed 4y agoThe update in that article said: "Update: CNET's Caroline McCarthy tweets at us: "Sounds like a good theory, except that a Color exec told me Sequoia's $$ was nearly triple Bain's." So we're back to: HOW DID THIS HAPPEN?" So Sequoia put in nearly triple what Bain put in. The article was just guessing before the update.