Some of this is actually the sign of a bubble in startup investing. When the market is tough, investors typically do much more diligence (they are more careful and they have more leverage). When the market is superheated, there&#x27;s so much money chasing any deal that looks remotely interesting that any investor who wants to do real diligence is basically shut out by the investors who are willing to put up a check without it. FOMO overcomes the duty of care.<p>It&#x27;s like buying a house in a hot market; cash offers with no contingencies win out over &quot;smart&quot; buyers who want to know what they&#x27;re getting.