> I am more interested in developing the mechanism and knowledge it would take to avoid making those kind of mistakes. Step #1: do your due diligence. Usually

> I am more interested in developing the mechanism and knowledge it would take to avoid making those kind of mistakes. Step #1: do your due diligence. Usually that means hiring experts to do it for you if it’s outside your field of expertise. Biotech VCs have a stable of expert consultants in many subfields of science and medicine to do the reviews for them, as well as accountants to go to for financials. That’s it. There are no more steps. Doesn’t matter whether its a founder asking for capital or a nigerian prince asking for a wire transfer. Theranos’ investors did not do their due diligence and paid the price.