[askafriend]

> It's not that hard to see the emperor is dearlng no clothes.

Well the business model assumes 90%+ of companies fail. They're only looking for a small number of big winners. And because of the fast moving nature of the space, things like numbers can be fuzzy and aren't really too important until the later stages. So there's just less diligence in general and understandably that creates room for some fraud. That doesn't mean the model is a scam.

The issue is that too much money got pumped into the space in recent years when it really wasn't needed.