>But, contrary to popular belief investors aren’t total idiots who neglect basic questions

Investors, particularly tech investors often do neglect basic (tech DD) questions.

Sometimes it’s because they’re investing in the “team” and neglect DD. Sometimes it’s because the area is hot and they need to make a play... or just because they happen to know or like the people involved.

Whatever the reason, it’s dangerous to assume that the investors must have done their DD (see Theranos for example). Not saying that this is the case here, and often things work out anyway...