And with this specific industry it would be cheaper to not do the deep assessment (medical compliance work is $$$ and you can only lose 1x your investment, if it is real you can make 100x).
But if it is 100x more likely to not be real then it is worth investing the money to do the confirmation. This is true for medical and a lot more. Any company with a scientific foundation should have due diligence in the form of test accuracy, precision and reliability before a penny is invested. Anyone investing in a company where the technology is a scientific breakthrough should insist on confirmation tests. If those are forged then it becomes a criminal issue and you don't get to hide behind an officer level position.
I think with this specific industry testing and compliance is more important in due diligence.
She had an inside track to a lot of investors (and big name board members) which helped her immensely. Add on a nice demo and it's not hard to imagine.
According to the WSJ she was childhood friends with Tim Draper's daughter and that's where she got her first round.
> The first $1 million came from Tim Draper, a founder of Draper Fisher Jurvetson, through two of his funds. Ms. Holmes was a childhood friend of his daughter and came to him “with extraordinary energy and brilliance,” he says.
At that point you have a very bright founder who interviews well and is backed by Draper. Everyone else assumes everyone else did their research.
