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> Do you think that VC's should be pulling credit reports or criminal background checks or something, like a bank? It's funny to use this as some kind of absur
by AlexandrB 3y ago
> Do you think that VC's should be pulling credit reports or criminal background checks or something, like a bank?
It's funny to use this as some kind of absurd example when in many places this kind of stuff is standard before someone lets you rent an apartment. Isn't vetting founders and their companies before risking the LP's money part of the job for a VC?
- gunapologist99 3y agoOf course, it is an absurd example. I'm sure SBF had great credit and no criminal background. Very few founders who would ever catch even the remotest VC interest would have any significant negatives, on paper anyway. SBF was seen as a catch because of his elitist and entrepreneurial background, with two professor parents at Stanford, a background on Wall Street, a hilariously affected backstory about international cryptocurrency arbitrage, crazy ideas on how his future wealth could (and would) save the world, and a later history of donating or bundling crazy amounts of money for his preferred political party (and anyone else in either party or agency that he could perhaps influence with donations). That's why checking credit report or even criminal background is so absurd in this context. Checks like this won't do anything except further entrench the elitist anti-meritocracy that currently infects the VC community. Lots of people can walk into a bank and get a loan, but very few can walk into Sand Hill Road and raise a round of any size.