It’s time we choose intentionality over hype while investing

In the classic children's story, "The Emperor's New Clothes", a vain ruler parades through the streets, convinced he's wearing a magnificent, invisible garment. The townspeople, caught up in the collective delusion, shower him with praise—until a child points out the obvious: the emperor is in his underwear. For some reason, this story keeps popping into my mind when I see investors falling for hype. 

Whether it's the dot-com bubble of the early 2000s, the cryptocurrency frenzy, the metaverse mania, or the current obsession with AI startups, investors often find themselves chasing the next big thing without fully understanding its long-term potential. The dot-com bubble alone wiped out an estimated $5 trillion in market value. More recently, WeWork's dramatic downfall highlighted how overlooking fundamental issues in favor of hype can result in substantial losses. WeWork's valuation plummeted from $47 billion in January 2019 to less than $8 billion by the end of the year, leading to massive layoffs and financial losses.  

Similarly, I believe the latest hype bubble of stand-alone AI is about to burst. We are already seeing this occur - Crunchbase data from June showed AI funding is down nearly 30% compared to last year. Now, I'm not saying AI isn't revolutionary. It absolutely is. But when we funnel massive amounts of capital because of hype, money will be wasted. Money that we could have more intentionally invested into science, medical, and technological advances that could help solve humanity's most pressing challenges.

Unlike the emperor who was deceived by others, today's investors are being duped by their own enthusiasm. They're so eager to be part of the next big thing that they're willing to overlook the lack of substance. It's as if we've collectively convinced ourselves that these investments are magnificent robes of innovation when, in reality, many are parading around in their metaphorical underwear. 

By chasing deals driven by hype cycles and reactive trends—what I call stand-alone tech —we risk overlooking opportunities that could lead to genuine innovation and progress. Instead of merely keeping up with the Joneses, we need to invest with purpose and foresight. But how do we get there? 

Let’s investigate…

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Invest in solutions to real-world problems

It's time for a paradigm shift—a move away from investing in hype and toward what I call intentional investing. Intentional investing is about aligning your investments with your values and long-term goals, focusing on companies that are solving real-world problems and contributing to a better future.  It's about recognizing that every single dollar we invest is a vote for the kind of world we want to see. We have the power to change the world with the investments we make. Consider sectors that address significant global challenges. Take our current healthcare system, for example. It is predominantly reactive, and I call it a "sick care" system because it focuses on treating illnesses rather than preventing them. According to the Centers for Disease Control and Prevention (CDC), ninety percent of the US’s $4.5 trillion in annual health care expenditures are for people with chronic and mental health conditions.

What if we shifted our focus toward preventative care and wellness? Investing in companies that promote healthy lifestyles, early disease detection, and personalized medicine could not only reduce healthcare costs but also improve the quality of life for millions. A study by the Trust for America's Health found that investing $10 per person annually in community-based disease prevention programs could save the country more than $16 billion within five years—a return of $5.60 for every $1 invested. According to a study published in Nature Aging, extending healthy lifespan by just one year could save the U.S. economy $38 trillion over the next five decades.

So I find it as no surprise that Google's Calico Labs has dropped over $2 billion into aging research. Altos Labs burst onto the scene with a $3 billion war chest for cellular rejuvenation. Even Jeff Bezos is getting in on the action, backing age-reversal tech. Peter Diamandis's XPRIZE Foundation is offering a $101 million prize to develop therapies that boost 65-80 year olds' vitality to middle-age levels. These are ventures with the potential to significantly improve quality of life and extend healthy human lifespan. By investing intentionally in such companies, we're not just seeking financial returns—we're contributing to advancements that could benefit society as a whole. 

It doesn't have to be in longevity. Pick a space that you’re passionate about.  Ask yourselves — what are you passionate about? What problems keep you up at night? Maybe it's accessible education, sustainable agriculture, or space exploration. Whatever it is, that's your compass for intentional investing.

Surround yourself with diverse perspectives

Studies show companies with more diverse management teams have higher innovation revenues, and women-led startups often generate more revenue per dollar of funding than their male-led counterparts.  Boston Consulting Group found that for every dollar of funding, female-founded startups generated 78 cents in revenue, compared to just 31 cents for male-founded companies. Yet, the share of startups with at least one female founding member was a mere 20% and that  only 2% of total investment went to all-female businesses. When investment and development teams lack diversity, they often overlook the needs of different demographics, leading to products that cater to a narrow segment of society.  Investing without bias and in women-owned businesses is a sensible business decision. 

As investors, we need to improve our tech literacy by educating ourselves, attending workshops, reading widely, and surrounding ourselves with a diverse network of experts - engineers, scientists, philosophers, sociologists. Their varied perspectives will help us see applications and pitfalls that might not be obvious from a purely financial standpoint, allowing us to navigate this dynamic market more effectively. For instance, understanding the regulatory landscape is crucial. Emerging technologies often face shifting regulations that can dramatically impact their viability. By engaging with experts, we can anticipate changes and make more informed investment decisions.

Companies that prioritize ethical practices often perform better in the long run. A McKinsey report found that companies with diverse executive teams are 25% more likely to have above-average profitability. Moreover, consumers are increasingly favoring companies that demonstrate corporate social responsibility. According to the 2020 Edelman Trust Barometer, 73% of employees seek societal impact and nearly two-thirds of consumers make purchases based on beliefs. By investing in such companies, we not only support societal well-being but also potentially enhance our financial returns.

Companies like Tesla, which focuses on sustainable energy, have not only disrupted the automotive industry but have also achieved a market capitalization exceeding $800 billion as of 2023, demonstrating that solving real-world problems can lead to substantial financial success. A 2019 study by Deloitte found that purpose-driven companies witness higher market share gains and grow three times faster on average than their competitors, all while achieving higher workforce and customer satisfaction.

The future of companies: lean and impactful

Gone are the days when Silicon Valley prized explosive employee growth and rapid scaling above all else. Auren Hoffman, an American entrepreneur and investor,  believes that in the future, we'll admire companies that do the most with the fewest employees. Imagine industry giants pulling in massive revenues with just 2 or 3 people - a CEO, product manager (and their AI agents!) on the payroll. It's going to be all about leverage and efficiency moving forward. 

This isn't as much of a radical idea as it may sound. Even without AI, companies in recent decades have grown to incredible sizes. WhatsApp, for example — before being acquired by Facebook for $19 billion in 2014, it had only 55 employees serving over 450 million users. Another example is Instagram, which had just 13 employees when it was acquired by Facebook for $1 billion in 2012.

Focusing on scalability and efficiency allows you to identify and support companies that are lean but have the potential for significant impact. Look beyond traditional metrics of success and assess how companies leverage technology to amplify their reach. Evaluate efficiency indicators like revenue per employee to understand how effectively a company utilizes its resources.

Sit quietly

The philosopher Blaise Pascal once famously wrote, "All of humanity's problems stem from man's inability to sit quietly in a room alone." Doesn't that just hit the nail on the head when it comes to our current investment frenzy?

A person falling for hype is indeed an agitated person. He/she's driven by FOMO (fear of missing out), not by a deep understanding of the technology and its potential implications. They are more concerned with being part of the in-crowd than with doing the hard work of due diligence and critical analysis.

By shifting our mindset and more thoughtfully allocating our capital to deep and emerging tech ventures aligned with a long-term vision for the future—rather than chasing short-term hype—we can play a pivotal role in steering humanity towards a better tomorrow.

Of course, this is easier said than done. The allure of the next big thing is always strong, and the fear of missing out is a powerful motivator. But if we can cultivate the discipline to sit quietly and reflect, to tune out the noise and focus on what really matters, we'll be better positioned to make investment decisions that stand the test of time.

The ability to sit quietly and reflect is about more than just making better investment decisions. It's about living a more intentional, purposeful life. It's about having the courage to chart our own course, even if it means going against the grain of popular opinion. So let's take a moment to pause, to sit quietly, and to ask ourselves what truly matters in the world of tech investing. The next time you're considering an investment, ask yourself: Am I buying into hype, or am I investing in a better future?

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ABOUT THE AUTHOR, BRIAR PRESTIDGE:

Briar Prestidge, CEO of Prestidge Group, is an award-winning documentary producer, Web3 evangelist, and futurist. She is also a metaverse board advisor to INTERPOL's Investigations and Forensics team, as well as a board advisor to Humanity+, the Metaverse Fashion Council, and serves as a strategic advisor for Imagin3 Studio. 

In 2016, Briar founded Prestidge Group, a leading executive personal branding, PR, and speaker relations agency. The company manages HNWIs, C-level executives, technology experts, celebrities, government officials, and investors, with offices in Dubai, New York, and London.

In her award-winning documentary '48 Hours in the Metaverse', Briar spent 48 hours non-stop on VR and metaverse platforms interviewing 21 experts across 33 virtual worlds. The documentary was awarded five laurels from major film festivals and was featured in leading publications such as Forbes and WIRED. As a tech-fashion designer, Briar has a futuristic fashion label for avatars and a shopping empire on Roblox under her tech-fashion house OLTAIR . In 2021, her first phygital fashion label, inspired by her luxury suit collection (now closed), was showcased at the world’s first Metaverse Fashion Week on Decentraland.

Briar aims to influence a new generation of creative thinkers who dare to envision humanity’s next steps. To learn about how we can elevate the human condition, find solutions to world problems, and find a balance between opportunity and risk, she hosts exclusive discussions with visionary CEOs, tech experts, scientists, inventors, futurists, and philosophers on her podcast HYPERSCALE: The Podcast of the Future, and on her upcoming documentary, Cyborg To Be.

Briar was named one of the ‘Top 100 Most Influential’ people in the United Arab Emirates by Ahlan! Magazine, and has been featured in Entrepreneur, Forbes, OSN, Emirates Woman, Marie Claire, Grazia, WIRED, and The National, among others, in recognition of her work.

LEARN MORE AND VISIT BRIAR'S PRESS WEBSITE