> How much due diligence really occurred here?
A just question. How much due digilence was done on SBF / FTX by The New-York Times and by the VCs who poured hundreds of millions into a pure fraud?
A just question. How much due digilence was done on SBF / FTX by The New-York Times and by the VCs who poured hundreds of millions into a pure fraud?
NYT isn't an investor, so that's a total non sequitur.
VCs on the other hand...VCs dont do much diligence. And who really cares really? They lost their money, not yours.
Not sure how much VCs coinvest in their own funds but I'm willing to bet most of their retirement funds are not in VC investments.
Then take this up with your local government then. There is a quantitative risk versus reward they take, and you should be glad that they take this bet. FYI - their portfolio mix for VC assets is usually like less than 5~10%. If a GP makes one bad bet, they hardly feel this.
> Not sure how much VCs coinvest in their own funds but I'm willing to bet most of their retirement funds are not in VC investments.
(1) most co-invest (2) no one in their right mind would put all of their assets in one VC fund. (3) if you're a partner a firm like Sequioa, you likely have a family office setup, which would follow a similar model to that of a pension fund.
Since huge frauds propped up by VCs seem to collapse several times a year, it doesn't seem like losing their money is incentive not to invest in frauds. It seems like they've just priced it in.
Granted, this might be yesterday's war, money might be tight in the next few years and that might better align incentives.
No one made you buy crypto on FTX. You have to do your own diligence.
> It seems like they've just priced it in
Ding. Ding.
> it creates an externality we all have to deal with - we're basically subsidizing their credulousness by getting defrauded.
and I commented on why I thought it was wrong (e.g. "you don't have to deal with these externalities unless YOU choose to"). How is that not a discussion?
> That's not really what I'm here for, so take care.
Yet, you still responded...hence, discussion.
Sheesh, tough crowd.