On the other hand, Google Ventures is likely to view their due diligence reports as competitive advantage, relative to other funds. After all, Google Ventures chose to invest in hiring the right experts to evaluate opportunities like Theranos. Why should Google Ventures let other funds get a free ride?
Back then, the Google code of conduct still included the phrase, “Don’t be evil.” One could certainly make the case that it’s evil to let people get scammed and possibly die because they have severe illnesses that are being misdiagnosed just so you can maintain a competitive advantage over other investors.
Google allegedly ditched the ‘Don’t be evil’ mandate this year, though, so when future conundrums like this arise, they can be evil without being hypocritical.