Due diligence? I mean, I understand VCs are not the smartest bunch but if you are investing $30M, please do the due.
Interestingly how nonchalantly you mentioned that.
It wasn't the case with me. Elizabeth Holmes/Theranos case opened my eyes that there exist significant amount of people that hold significant capital (millions) and are, hm, not the smartest bunch, as you politely put it.
It still somewhat amazes me. You'd think these people were careful, considerate, etc.
I'm sure that on average, they're capable, intelligent people. But they're also a product of "right-place-right-time", many times they were "nerds" who were of the right age to get ahead of the internet and become filthy rich.
Now, many of them believe they have insight to offer on everything, from politics to philosophy. PG has complained about this on Twitter: why don't we listen to these successful people on other topics?
Because they aren't as smart as they think they are.
when i played counter strike we called it spray and pray
i should call it the portfolio theory of ballistic delivery
I dont buy this argument. I used to help manage a large portfolio. Portfolio theory does not mean that you can put in garbage and magically get more than garbage (actually, it did with CDOs, since they were tranched, but even that ended up tragic if you recall 2008.)
Portfolio theory, esp with A-round and beyond VC where your portfolios are smaller (~15 to 30 entities) requires due diligence.
The entire game is picking the winners so how much are you going to dedicate to predicting that (which is massively unpredictable) vs just investing in another shot that may be a winner.
https://medium.com/startup-grind/technology-due-diligence-or...
> please do the due.
In conclusion..it's not your money, so why do you care?