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Having recently completed fundraising for a pre-seed, it's wild to me that I had VCs spending multiple weeks sometimes on "due diligence" for an idea-stage prod
by dbish 3y ago
Having recently completed fundraising for a pre-seed, it's wild to me that I had VCs spending multiple weeks sometimes on "due diligence" for an idea-stage product, yet there are many examples of just yolo huge investments. It's who you know or what hype is around you in these cases I suppose.
- thephyber 3y agoA company in pre-seed phase has no history, so some of the other indicators of promise/trust don’t yet exist. It makes more sense for the first investor in a new company to spend some time to investigate the founders and/or the idea or market. That, however, doesn’t mean that later or faster investment rounds are any more informed.
- ignoramous 3y agoYou may find this interesting: http://paulgraham.com/herd.html http://paulgraham.com/herd.html