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> I assume that VCs aren't going to throw 10 million dollars at somebody without doing atleast some due diligence. This is a dangerous assumption. VCs often t
by ebbv 11y ago
> I assume that VCs aren't going to throw 10 million dollars at somebody without doing atleast some due diligence.
This is a dangerous assumption.
VCs often trust founders more than they should, especially when it comes to areas the VCs are not knowledgeable. Add in an idea that would obviously be adopted everywhere, and the allure of a billion dollar idea overrides sanity checks.
- S4M 11y agoSo, why hasn't anybody raised millions for a company making flying cars or other crazy but wonderful technology like that?
- fredkbloggs 11y agoBecause people have been trying to build flying cars for a long time, haven't really had any success, and in the process have exposed most of the problems with the concept. Since most people understand flying cars and have a pretty good idea as to why they can't be built, it's much more difficult to bamboozle someone out of money by telling him you're going to build a flying car. Things that either haven't been attempted (at least publicly) before and/or rely on physics or other underlying behavior that isn't widely understood have a much better chance of getting funded. It's just easier to snow someone with something they don't understand.
- ebbv 11y agoPeople have raised millions for flying cars. It continues to bilk credulous investors. But that one's been going on for 40+ years so at this point most investors are wise to it.