FTX Contagion
Maybe someone can help illuminate a nagging question I've had for quite sometime around this whole FTX debacle:<p>Practically every single VC seed round story I've heard from new/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 "big boys" in the VC game, to pension funds and I can'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't make me think "oh what a crazy one off, people must have been sleeping at the wheel", this makes me think "this isn't a bug, this is a feature."<p>So the real question is, how many more proverbial rotten apples are in the basket of VC?