When venture investing goes wrong

When we often hear the glamorous stories around angel / venture investing, there are plenty of examples out there that venture investing can and often goes wrong. Sometimes it is simply due to the competitive environment or execution issue – afterall, startups environments are competitive and it is often a grow or wither type of situations. Other time, it can be due to the lack of financial discipline or alright frauds.

Before things go wrong, it is often not easy to discern the seriousness of the problems faced by a startup. That’s what makes angel investing so difficult — it is an art rather than a science, it is a guess or a mind experiment of how a startup is going to evolve when there are simply so many unknowns that could affect the trajectory of the startup growth.

Below is a story of venture investing goes wrong, and Youtuber ColdFusion did a great job explaining it. Enjoy!