The Real Reason "Stupid" Startups Raise So Much Money-Nir&Far

03/26/18 • 5 min

Nir And Far: Business, Behaviour and the Brain

Have you noticed all the startups raising massive sums of money recently? Perhaps you’ve scratched your head wondering how a company like Buzzfeed, known for its website full of animated gifs, listicles and quizzes, just raised $50 million dollars, valuing the company at a reported $850 million. Snapchat, the messaging app known for helping teenagers sext one another, reportedly received a $10 billion valuation from its investors. Has the world gone mad?

Some industry watchers see the recent boom in seemingly trivial apps and websites as foretelling tech bubble 2.0. However, there’s much more to the story.

You can read the Nir and Far blog post on: The Real Reason "Stupid" Startups Raise So Much Money https://www.nirandfar.com/2014/12/stupid-startups.html

Nir & Far, a podcast about business, behaviour and the brain by Nir Eyal. If you enjoy this podcast, please subscribe on iTunes and leave an iTunes review. It will greatly help new listeners discover the show. Please visit my website Nir and Far for other info about my writing, books and teaching: http://www.nirandfar.com/

Some industry watchers see the recent boom in seemingly trivial apps and websites as foretelling tech bubble 2.0. However, there’s much more to the story.

You can read the Nir and Far blog post on: The Real Reason "Stupid" Startups Raise So Much Money https://www.nirandfar.com/2014/12/stupid-startups.html

Previous Episode

How to Use Psychology to Make Persuasive Video-Nir&Far

Compared to other media types on the web, video is unique in the immediacy with which it can convey a vast amount of emotional and informational content to its viewers. By virtue of the fact that video is an instantaneous form of communication, it has the advantage of being able to create a shared experience, in which people can watch the same thing at the same time, wherever in the world they might be. As with all social content, enabling people to participate in such a way can create a profound sense of connection and community, which can help generate word of mouth and amplify the reach of your message.

Unlike images or copy, video (and audio) set the pace at which a story or message is delivered. Although it is true that people can stop watching whenever they choose, the analytics tools built into video hosting platforms are making it easier than ever before to assess when people are bouncing away. This

Next Episode

The Strange Way Being "Good" Hurts Your Willpower-Nir&Far

Nir’s Note: This guest post is by Paulette Perhach. Paulette writes about finances, psychology, technology, travel, and better living for the likes of The New York Times, Elle, and Slate.

I learned how to respect authority from my father. At the top of a huge water slide at a theme park, he put me, my siblings and cousins in a huge, round raft, then started to get in himself. “No sir, that’s too many,” said the attendant. My father simply replied, “Hup, too late!” Then jumped in and shoved off. We caught air on the bumps, making the ride much more wild than it would have been, had we followed the rules.

Dodging the regulations of anyone with a whistle or a name tag became my favorite game. I avoided homework in sixth grade and, when I had a solid 0 percent in t