I watched the whole Chamath talk you linked and I'm not sure I'm entirely convinced. Every couple of years there is a guy like him yelling that this is all a big ponzi scheme about to collapse.
But Softbank is a poor example given how the invest almost entirely in late stage companies, mostly with real profitable business models, who would otherwise easily find plenty of funding in traditional less risky capital markets (who don't share the same critique but push the same never-ending growth pressure and often far worse backroom financial trickery).
This is very distinct from the dotcom boom... or you know acutal Ponzi schemes... which were entities which raised countless millions on zero-value organizations. He's probably right in some ways but lost me in his exaggerated/radical positioning which he seems fond of.
Acknowledged and true that there is always someone with a contrarian pessimistic view. Chamath seems bent on "burning it down" after his own firm went through what objectively looks like a meltdown.
Also true that later stage companies have working business models (though they are typically not profitable a tradeoff they willingly make for growth). See the comment above on plenty of funding post SoftBank round. I've also observed that their valuation forces founders to do subsequent down rounds.
The Ponzi scheme argument (not perfect) is the gains are all paper valuations that are based on growth continuing or more investment being piled in. Once that stops the whole thing crumbles. After Softbank with a $100B fund, where else does the funding come from? IPO?
But Softbank is a poor example given how the invest almost entirely in late stage companies, mostly with real profitable business models, who would otherwise easily find plenty of funding in traditional less risky capital markets (who don't share the same critique but push the same never-ending growth pressure and often far worse backroom financial trickery).
This is very distinct from the dotcom boom... or you know acutal Ponzi schemes... which were entities which raised countless millions on zero-value organizations. He's probably right in some ways but lost me in his exaggerated/radical positioning which he seems fond of.