Peoples & Things

Jeffrey Lee Funk on Unicorns, Hype, and Bubbles

24 snips
Mar 24, 2025
Jeffrey Lee Funk, a retired professor and author of "Unicorns, Hype, and Bubbles," shares his expertise on spotting and navigating technology investment bubbles. He highlights how exaggerated hype leads to unsustainable startup valuations, especially in the realm of generative AI. The conversation critiques the myth of instant tech success and discusses the impact of easy money on market dynamics. Funk emphasizes the need for critical thinking and a structured approach to innovation amidst the complexities of modern tech culture.
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INSIGHT

Startup Bubble vs. Dot-com Bubble

  • The recent tech bubble differs from the dot-com bubble.
  • It focuses on startups, not incumbents, making it harder to track with traditional metrics like NASDAQ.
INSIGHT

Shift in Media Focus

  • Media coverage of tech companies has shifted from focusing on profits to hype.
  • This is driven by financial incentives, as companies now pay for news coverage and influencer marketing.
ANECDOTE

Amazon's Unprofitability

  • Amazon's 10-year unprofitability is often cited to justify unprofitable startups.
  • Funk dismisses this comparison, highlighting its illogical nature.
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