Like Theranos, WeWork, and FTX - it's the story of a darling founder who has to justify an unrealistic valuation in a frothy market. The other issue for all of

Like Theranos, WeWork, and FTX - it's the story of a darling founder who has to justify an unrealistic valuation in a frothy market. The other issue for all of the examples you cited (and Lambda) is an-almost complete failure for the VCs and accelerators and other gatekeepers to effectively carry out due diligence. I say "almost" because in the case of Theranos, some investors did pass, according to the documentary and WSJ reporting. And there may be others that passed on Lambda and WeWork that will never come to light. But FTX - the transcript of the Sequoia internal chat supposedly vetting SBF is laughably amateur and shows the mindset that allows VCs to be duped by pattern matching and specific personality types (Ivy dropout, MIT mad scientist, charismatic new age genius, etc.): > That’s when SBF told Sequoia about the so-called super-app: “I want FTX to be a place where you can do anything you want with your next dollar. You can buy bitcoin. You can send money in whatever currency to any friend anywhere in the world. You can buy a banana. You can do anything you want with your money from inside FTX.” > Suddenly, the chat window on Sequoia’s side of the Zoom lights up with partners freaking out. > “I LOVE THIS FOUNDER,” typed one partner. > “I am a 10 out of 10,” pinged another. > “YES!!!” exclaimed a third (see https://news.ycombinator.com/item?id=38128504 https://news.ycombinator.com/item?id=38128504)