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To some, Theranos lawsuit shows scary side of buying stock in private companies
- Thread starter dealmaker
- Start date
I'd actually say VCs value a team, investors value a company. That's why they fall for the social proof of other investors who do seed and A rounds. It works most of the time, Elizabeth Holmes just managed to fool them all.
That then can be construed as FOMO investing or SILO thinking. Of-course this happens on Wall St too.
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No different than us traders?Venture Capital Fund= Throw some shit at the wall, and see what sticks.
Similar to Taleb's model on options trading hunting for Black Swan.It's actually their stated model and it works pretty well. The herd mentality is definitely strong in that industry, which is funny since they all see themselves as so cutting edge. But by and large the model works, you don't see any funds that were particularly hurt by this because they build in the idea that most if their investments are going to fail.
How is it even possible??? Their product is a fraud that did not work.
In fact the term "real options" is used quite a bit in that industry and the thinking is very much as you describe. Heck, your analogy is good on a couple levels because the industry is also full of brilliant people you can learn from who can be unnecessarily arrogant, obnoxious assholes at times!Similar to Taleb's model on options trading hunting for Black Swan.
I am not familiar with this company but are you sure their products did not work?How is it even possible??? Their product is a fraud that did not work.
Perhaps they just did not work well consistently or did not work in all cases? Is it that different from a FDA approved cancer drugs that could extend life by a few weeks or months for selected patients only?
I followed the story very closely as I love such rare success stories. But it was all fraud. She claimed to invent the device that could run all kind of blood test from just a little bit of blood drawn from finger tip. They ended up producing hoards of incorrect results, and then tried to cover it up by doing conventional blood test, all along lying to everyone about their "fake" product. It baffles me that she is not in jail.I am not familiar with this company but are you sure their products did not work?
Perhaps they just did not work well consistently or did not work in all cases? Is it that different from a FDA approved cancer drugs that could extend life by a few weeks or months for selected patients only?