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baldur@toot.cafe ("Baldur Bjarnason") wrote:
“Venture Fraud”
https://papers.ssrn.com/sol3/papers.cfm?abstract%5Fid=6220259
> Fraudulent entrepreneurs continue to found new VC-backed startups unharmed, suggesting weak market discipline.
And:
> We find that firms initially financed in hotter markets--those with higher valuation multiples--are more likely to commit fraud at some point in the future.
This is why I've been saying, for a long while now, that it's likely that at least some of the "AI" firms are committing fraud