[SilverElfin]

> investments are often justified as a cost of running a VC firm

> But yes, you’d expect more due diligence from investors, but a lot of times it’s just about how likeable you are and who you know.

I think both of these can be true simultaneously. The limits of due diligence and the practical ability to evaluate an investment opportunity (quickly and at low cost) mean you sometimes do make mistakes, even “stupid” ones. But also, access and networks and old boys clubs are rampant in the VC ecosystem.