Venture Capitalists tell us that they invest in the people involved in a project and not just the project itself. They might combine hard-nosed analysis with passion for an idea but most of us assume that they will always default to the bottom line before anything else. This is why I find the IH development interesting. It seems inconceivable that anyone coming from a VC background would not perform rigorous due diligence on something like the eCat. Could they really let their passion overrule caution?
I hope it is not the case. I do hope the company brought in independent and qualified personnel to test the eCat beyond Rossi’s control. Any observation regarding IH’s lack of expertise is neither here nor there. It would be trivial – considering the money involved – to hire the right people and with luck they did exactly that. Perhaps our hoped-for independents built the device on behalf of IH (as far as Rossi is concerned his partner built it). Perhaps this is why they do not have any problems with him making such statements on his blog. They have had the best part of nine months after all. If all of this is true and then they still decided to issue the press release, that is quite a strong statement.
Of course we can always turn the equation on its head. If we were to invest in IH, due diligence would force us to look at those involved. As far as I can tell these are good people – exactly the type I admire for their efforts to make a difference. It sometimes feels like we are stuck in a pit surrounded by money-men with no concern for others. But could it go too far the other way? Looking at JT Vaughn’s blog, I fear for the sequence of events that led them to invest. I pray (metaphorically) that the attitude expressed there was not dominant when negotiating with Rossi. Thank goodness people like Vaughn exist but in this case if he relied more on faith than science, I would urge them to think again. Could this be why Rossi keeps using the phrase “whether the results are positive or negative” in reference to current and future tests?
I hope my fear is unfounded but if not and Rossi is ever put on trial, he has prepared an interesting defence for himself. He has Nobel laureates as unwitting exhibits, scientists to the left and right who all agreed with him. He even let experts test it for themselves and cautioned that the results could be negative – he can also afford a good lawyer.
I am rooting for IH but would not invest in the eCat without substantially more proof. I hope they have that proof and make lots of money from making the world a better place. I may not be religious or share their faith but for once I would like the good-guys to win.