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All we are saying is give due diligence a chance in 2023



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Looking back, 2022 was quite the year for some investors, and not in a good way. Mistakes made in the boom period of the past couple of years led to many write-downs, but the most egregious example of abysmal investing practices this year was FTX, the bankrupt and disgraced crypto exchange.
In fact, while we wrote this, Sam Bankman-Fried, the company’s co-founder, was being extradited from The Bahamas to the U.S. where he faces eight criminal charges. In the past few months, his investors simply watched as the company’s value evaporated from $32 billion to zero in no time flat. Like the rock band Talking Heads, they might well have asked themselves, “Well, how did I get here?”
Well, one big reason was because FOMO often replaced due diligence. And for a while, the V in VC appeared to stand for “vibes” — founders’s vibes seemingly became more important than their products.
Unfortunately, FTX is only the latest in this line of failures. We can r …

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