I suspect this is one of those provocative posts that gets misquoted, misaligned and misunderstood, and definitely not to be taken at face value. Still, read Avoiding Undue Diligence: My Strange Approach To Angel Investing, in which Dharmesh Shah argues against due diligence in angel investment.
I don’t subscribe to the idea in the title. And I’m familiar with Robert Wiltbank’s exhaustive research on angel investment — as in this summary in TechCrunch — that shows a serious correlation between more hours of due diligence and higher incidence of successful exists.
Still, Dharmesh’ refreshingly contrarian, and unabashedly honest, analysis is worth a good read. And the comments are lively too.
Furthermore, I’m really intrigued with this quote near the bottom:
There’s no such thing as too many companies starting up. But, there is such a thing as not enough companies shutting down.
Now there’s a thought worth following up.