Startup fraud and failure result from a lack of proper due diligence and the inexperience of venture capitalists during periods of excess capital.

“What this is is that there aren't enough checks and balances and there are fundamentally people who are deeply inexperienced, who are in the wrong job.”

A business failure is useful if it teaches the entrepreneur important lessons and provides momentum for future ventures.

“The most important thing of this entire business was just that I started and I kind of got the itch and I kind of got some momentum and I saw, man, if I can make that much progress with something I knew nothing about, then, you know, the next thing didn't scare me.”