Reflexivity: Why AI Valuations Accelerate—and How the Loop Reverses
FinanceYF5 · x · 2026-10-06
Part 6 of the 20VC thread with Menlo Ventures partner Venky Ganesan explains reflexivity: fast revenue growth lifts valuations, which attract top talent and more capital, further accelerating growth. But when momentum investors chase price over fundamentals, the same loop amplifies a bubble in reverse until reality forces a correction.
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