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You stated that "It looks like a lot of absolutely basic due diligence from investors was skipped, probably due to the prioritization of DEI initiatives and wil
by StressedDev 2y ago
You stated that "It looks like a lot of absolutely basic due diligence from investors was skipped, probably due to the prioritization of DEI initiatives and willingness to support them blindly." Do you have any proof that due diligence was skipped? Also, due diligence will not catch every fraud.
- vkou 2y agoNo, but the great thing about a company collapsing into fraud is that anyone can bring out their favorite whipping horse for the reasons why.
- kiba 2y agoI don't think venture capital are known to be discerning about what they invested in. They will dump money and follow industry trends just like everyone else. DEI initiatives are just excuses for doing a bad job. They would have done a bad job anyway.
- blackeyeblitzar 2y agoI don’t have proof, since I don’t have visibility into the company or their investors. I’m speculating based on the kind of things that are typically done to verify things before finalizing an investment. For example from the DOJ release we know millions in revenue were claimed but the actual revenue was only $11000. They also lied about the cash on hand, which is easy to confirm, and the customers they had. None of the investors checked to confirm the contracts with the biggest school district partnerships they claimed either, it would appear. These are typical things to explicitly confirm in due diligence.