FTX Ventures Head: Venture Capital Deals in Bull Markets Lack Proper Due Diligence

ChainCatcher news, according to The Block, FTX Ventures head Amy Wu stated that during the last cryptocurrency bull market, venture capital deals were rushed and conducted without proper due diligence. "There was a lot of FOMO during the bull market. We were discussing how to close deals, and someone would commit to signing a letter of intent within 24 hours; then the rest of the round would come together immediately, with almost no due diligence."

She added that many projects were not long-term oriented and had a variety of skills and talents. Now that things have slowed down, there is more due diligence, and venture capital is checking the accuracy of project statements and conducting reference checks on founders. "Founders have longer track records in the field. That in itself indicates whether they are long-term oriented and whether all of this is healthier." (source link)