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14-11-2022, 01:41 PM
(This post was last modified: 14-11-2022, 02:18 PM by LionFlyer.)
(14-11-2022, 11:18 AM)weijian Wrote: Private capital is about what is probable. Venture capital is about what is possible. Of course both of them need to do their risk assessment/due diligence but looking at what is possible (Venture capital) probably features more dominantly than risk assessment/ due diligence.
I was thinking about this in the morning but didn't have the time to put my thoughts together.
Indeed, a VC mindset would see them look at factors beyond the current book value but market potential, opportunities and so on. But when startups fail, they fail for reasons due to the business or inability to execute. Simple list here :
https://www.cbinsights.com/research/star...asons-top/
But this failure has more to do with basic level compliance and governance issues and what is striking to me is the lack of board oversight. None of these investors ask for seat on the Board in their term sheets where they could have a better view on where their money is going / used and if there are any of such governance problems.
This high level of trust on SBF... well, maybe they think he is the next Zucks or Brin.
You can count on the greed of man for the next recession to happen.
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Auditors will never be able to find out how an X sum of money were dispensed if there is no documentation.
There are other further diggings which said that employees used corporate funds to buy homes for their own.
Para 1 is a question. Who was the auditor auditing FTX, if there are no documentation on how funds had been spent/disbursed how did the external auditor approve the year end accounts annually. I will be checking on the quality of work of the US external auditor. This is because it was found there was a lack of documentation and yet auditors passed the accounts. A credible auditor would have flagged out the absence of documentations or post-dated documentation.
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Good article that commented on Vitalik Buterin's remarks to ST, especially on centralized versus decentralised
https://vulcanpost.com/809399/why-vitali...lockchain/
You can count on the greed of man for the next recession to happen.