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A comment on A messaging app startup that raised $200M shuts down afters users were 95% fake. Parent comment

Re:A messaging app startup that raised $200M shuts down afte... by dbish on Monday June 26, 2023 @01:12PM (#36482660)
Having recently completed fundraising for a pre-seed, it's wild to me that I had VCs spending multiple weeks sometimes on "due diligence" for an idea-stage product, yet there are many examples of just yolo huge investments. It's who you know or what hype is around you in these cases I suppose.
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Re:A messaging app startup that raised $200M shuts down afte... by ignoramous on Monday June 26, 2023 @01:46PM (#36483139)
You may find this interesting: http://paulgraham.com/herd.html
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Re:A messaging app startup that raised $200M shuts down afte... by thephyber on Monday June 26, 2023 @01:43PM (#36483087)
A company in pre-seed phase has no history, so some of the other indicators of promise/trust don’t yet exist. It makes more sense for the first investor in a new company to spend some time to investigate the founders and/or the idea or market.

That, however, doesn’t mean that later or faster investment rounds are any more informed.

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