Silicon Valley’s unbridled euphoria runs into economic reality

Last year, a startup called Party Round announced itself with a flurry of memes. For months, amateur investors had been going gangbusters, buying up stocks, cryptocurrencies and digital art known as NFTs. But getting in early on the next hot tech startup was still a professional’s game. Party Round’s big idea was to let startups easily raise money from family members, former co-workers, bosses and others in their networks.

“Invest in friends,” Party Round’s tagline urged ahead of its introduction For a while, it was fun. The tech industry soared to record heights during the pandemic, and Party Round rode the frenzy with self-aware marketing stunts that poked fun at and celebrated startup culture.