"... How do venture funds not do better technical due diligence(or any at all)? ... How do we make sure companies don't do dumb things like this? ..." Because

"... How do venture funds not do better technical due diligence(or any at all)? ... How do we make sure companies don't do dumb things like this? ..." Because it's not seen by "management" or "VC's" as a priority. Extra programming is seen as a time and monetary cost, not a necessity. One company I worked for used plain-text for customer passwords and mandated Microsoft technology in the same breath. When I talked to the lead tech, I got a shrug. Not because of lack of technical smarts but politically tied hands from management. When I contacted the MBA minted CEO I got a blunt - "it's not a problem, don't worry about it". A physical loss is perceived more tangible than something ephemeral. Things did happen when people walking off the street stole "stuff" from the office. Swipe cards were quickly introduced. I'd broached such arrangements before the incident but that wasn't seen as a problem either.