Without going into too much detail, investors aren't generally in the business of losing money and at the scale of investment we've taken we're far beyond "bet on the team" kind of diligence.
Managing inventory and pricing risk is a key piece of this business and has been since day 1.
We really owe the world some blog posts, but until then hackers, data scientists, and predictive modelers are always welcome to come by the office for lunch!
>>investors aren't generally in the business of losing money...we're far beyond "bet on the team" kind of diligence
Sure, in principle large investments should mean good DD. But Magic Leap fans were pretty surprised this week. Theranos also raised more than Opendoor.
It's not fair to put other company's problems on Opendoor, but the point it's hard to accept the large cap/DD argument with so many counter examples.
In any case, it would be great to see you succeed - good luck.
That's fair and those are embarrassing tales in Silicon Valley. One difference is they were/are bets on a technology that wasn't in the market yet.
We buy and sell thousands o homes, hopefully at the appropriate price for the market's current level of risk. Hard, deeply appreciated by customers, but not much handwaving on how it will go to market.
In negative market conditions, you can't stop gravity. Not with VC funding, engineers or technology. Your business is a double edge sword - the only way you grow is by purchasing more debt. You're ignoring reality with a delusional belief in consumer demand.
>investors aren't generally in the business of losing money and at the scale of investment we've taken we're far beyond "bet on the team" kind of diligence.
LOL. When an SV founder defends his business model by pointing to fundraising numbers, look out.
Without going into too much detail, investors aren't generally in the business of losing money and at the scale of investment we've taken we're far beyond "bet on the team" kind of diligence.
Managing inventory and pricing risk is a key piece of this business and has been since day 1.
We really owe the world some blog posts, but until then hackers, data scientists, and predictive modelers are always welcome to come by the office for lunch!