SoftBank is suing portfolio company IRL after it admitted 95% of its users were fake. VCs are stressing the need for ‘uncomfortable’ due diligence::undefined

  • a_hungry_rat@lemmy.worldEnglish
    22·
    2 years ago

    How is it uncomfortable verifying how many customers you have? As someone who works in the legal sector I am staggered by how many anyone nebulous software companies are bought without the buyer conducting minimal due diligence like a review of the top 20 customers.

  • gravitas_deficiency@sh.itjust.worksEnglish
    21·
    2 years ago

    I’ll be blunt: if a large bank is stupid enough to invest money in a company that’s basically vaporware, and they invest because they were far too lazy to do any real due diligence, that’s on the bank.

  • silverbax@lemmy.worldEnglish
    7·
    2 years ago

    SoftBank is astoundingly bad at this. This is the same company that acquired Sprint, among other bad decisions. Last fall they were happy that they only lost $6 Billion in the quarter because they’d lost $10B the previous quarter. The financial system is really fucked up when companies like this just stay in business despite this type of incompetence.