FTX Contagion
Maybe someone can help illuminate a nagging question I&#x27;ve had for quite sometime around this whole FTX debacle:<p>Practically every single VC seed round story I&#x27;ve heard from new&#x2F;young founders is that the process is nothing short of a colonoscopy into not only their business, but also their professional network, and even their personal lives!<p>I look at the list of institutional investors, from the &quot;big boys&quot; in the VC game, to pension funds and I can&#x27;t for the life of me believe the current narrative that every level of due diligence checks seemed to fail in this single edge case.<p>From a systems perspective this doesn&#x27;t make me think &quot;oh what a crazy one off, people must have been sleeping at the wheel&quot;, this makes me think &quot;this isn&#x27;t a bug, this is a feature.&quot;<p>So the real question is, how many more proverbial rotten apples are in the basket of VC?