[rexreed]

Acquisition due diligence is not the same as funding due diligence. There are definitely differences in the two and different reasons for doing it. For acquisition, due diligence is part of the legal and compliance requirements. For VC, due diligence is supposed to be part of the deal vetting process, but it's usually a headache for everyone, and goes out the window when they want to move fast.

[JackFr]

Bacon & eggs. The chicken is involved but the pig is committed.

https://en.wikipedia.org/wiki/The_Chicken_and_the_Pig

[conradev]

Yeah, in the case of an acquisition, the acquirer can acquire all sorts of unsavory things – liability, debt, contractual obligations, lawsuits, etc that could potentially harm the acquirer.

In the case of funding, the worst possible outcome is that they write off the investment, like in the case of Sequoia and FTX.