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by deadowl 3705 days ago
It's not hard for an organization to put a system in place to mitigate any particular individual from making a poor decision. Entering into any decision that is high-stakes inherently justifies the cost of the existence or creation of such a system. For example, RFP processes are often required for any spending over a particular threshold on external vendors. Hiring processes often include input from more than one person.

If the investors didn't do their proper due diligence, then they can take steps to be more responsible in the future. If the founders misled them, then it becomes an economic and political issue of how to address and further prevent such problems.