> Also, I think most people vastly overestimate the level of competence of VCs and especially the degree of due diligence that they do. They are just as easily wooed by great presentations and the typical sales tricks. Cases in point: WeWork, Theranos, etc.
Remember when more than one millionaire funded Juicero? I remember.
It seems that VCs are either following the herd or buying the vision. The latter is a safe risk to take because the timescales of some projects are 10+ years which means the VC can delay the inevitable (firm goes to zero) with a slim chance that the returns will be huge. Personally I have tried and failed to raise VC money, as a result I have some sour grapes when I see firms raise $20mn+ for moon shot ideas that make no sense to me. Having said that I would rather be beholden to my firm's customers, customers who pay for an unsubsidized product that meets a market need, today.
Remember when more than one millionaire funded Juicero? I remember.