Gurley calls FTX the perfect pinnacle of the recent bubble where legendary investors ignored risk.
“And maybe FTX is the perfect pinnacle of this past one where a bunch of legendary investors just ignored risk. You know, and they wouldn't have done that in 2009.”
Gurley links VC cheerleading behavior directly to governance failures like FTX.
“The problem is that's the exact same type of behavior that leads to the FTX situation because you take yourself out of a governance role completely because you just become the founder cheerleader.”
Gurley criticizes FTX investors for funding a company with no board and commingled businesses.
“I mean, the markets have a way of separating, very risk seeking individuals from their capital. It may not happen overnight, but it always happens eventually. Like there's no easy money.”
Gurley questions investors who funded FTX despite no board and commingled businesses.
“I love the FTX story, not because I wanna pick on anybody, but to make the decision to give money to somebody that has no board and that has a side business that's commingled, who tells you it's not commingled, it turns out it was commingled. Like, what are you doing?”