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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insights 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.
insights 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.
question_answer 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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Jeffrey Funk
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Peoples & Things host, Lee Vinsel, talks with retired professor, consultant, Discovery Institute fellow, and a winner of the NTT DoCoMo Mobile Science Award, Jeffrey Lee Funk, about his recent book Unicorns, Hype, and Bubbles: A Guide to Spotting, Avoiding, and Exploiting Investment Bubbles in Tech(Harriman House, 2024). The book provides readers with fundamental tools for exploring technology markets and spotting financial bubbles, which have been recurring at a high rate in recent decades. In addition to talking through the basic perspectives the book provides, Vinsel and Funk also talk through examples of recent technology bubbles, including the likely current bubble centered on generative AI.