---
title: "Meaning & Key Takeaway of: A bubble in early-stage funding means…"
description: "\"A bubble in early-stage funding means maybe there's $300 million at work when maybe there should be $150, as opposed to a bubble in late-stage funding ..."
image: "https://sms4smile.com/quotes/i/432/dave-mcclure-12214_bubble_a-bubble-in-early-stage-funding-means-ma_530190.png"
---

#  A bubble in early-stage funding means maybe there's $300…

![“A bubble in early-stage funding means maybe there's $300 million at work when maybe there should be $150, as opposed to a bubble in late-stage funding which means there's $20 billion at work when there should be $3.” quote by Dave McClure](https://sms4smile.com/quotes/i/432/dave-mcclure-12214_bubble_a-bubble-in-early-stage-funding-means-ma_530190.png)   [Download](https://sms4smile.com/quotes/i/432/dave-mcclure-12214_bubble_a-bubble-in-early-stage-funding-means-ma_530190.png) [Open image](https://sms4smile.com/quotes/i/432/dave-mcclure-12214_bubble_a-bubble-in-early-stage-funding-means-ma_530190.png)

> “A bubble in early-stage funding means maybe there's $300 million at work when maybe there should be $150, as opposed to a bubble in late-stage funding which means there's $20 billion at work when there should be $3.”

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

## About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Early-stage funding bubbles inflate valuations far beyond realistic potential, unlike later-stage bubbles that are comparatively smaller but still problematic.

**In simple terms:** Early funding can overvalue startups dramatically.

Key Takeaway

Scrutinize valuations early.

Themes

finance valuation startups

Mood

cautious analytical

Type

advisory informative

When to use this quote

- pitch meetings
- investment decisions
- valuation analysis

Key Concepts

economics market dynamics

Questions to Reflect On

- How can investors spot early bubbles?
- What safeguards prevent overvaluation?

A Different Perspective

Overvaluation can lead to later crashes.

★ ★ ★ ★ ★   No ratings yet

[Work](https://sms4smile.com/quotes/about/work/)

## Related quotes

> [ERA means abortion funding, means homosexual privileges, means whatever else.](https://sms4smile.com/quotes/phyllis-schlafly/era-means-abortion-funding-means-homosexual-privileges-means-whatever/)

[Phyllis Schlafly](https://sms4smile.com/quotes/author/phyllis-schlafly/)

> [More than 300 million people in the world speak English and the rest, it sometimes seems, try to.](https://sms4smile.com/quotes/bill-bryson/more-than-300-million-people-in-the-world-speak-english-and-the-rest/)

[Bill Bryson](https://sms4smile.com/quotes/author/bill-bryson/)

> [Whenever you have dynamic interactions between 300 million people and the American economy acting in really complex ways, that introduces a degree of almost…](https://sms4smile.com/quotes/nate-silver/whenever-you-have-dynamic-interactions-between-300-million-people-and/)

[Nate Silver](https://sms4smile.com/quotes/author/nate-silver/)

> [My dream is to turn Europe into 300 million princes.](https://sms4smile.com/quotes/mikis-theodorakis/my-dream-is-to-turn-europe-into-300-million-princes/)

[Mikis Theodorakis](https://sms4smile.com/quotes/author/mikis-theodorakis/)

> [I'm a big fan of huge populations of people, so you'd think with 300 million people in the country, you don't even have to…](https://sms4smile.com/quotes/penn-jillette/i-m-a-big-fan-of-huge-populations-of-people-so-you-d-think-with-300/)

[Penn Jillette](https://sms4smile.com/quotes/author/penn-jillette/)

> [We can't tell an electorate...when you have something like in excess of 300 million people without any access to electricity at all that you…](https://sms4smile.com/quotes/ronen-sen/we-can-t-tell-an-electorate-when-you-have-something-like-in-excess-of/)

Ronen Sen

> [It will be good for us in the long run, and I mean there are, you know, six and a half billion people in…](https://sms4smile.com/quotes/warren-buffett/it-will-be-good-for-us-in-the-long-run-and-i-mean-there-are-you-know/)

[Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/)

> [If 300 million people were to offer up the details of their private lives, you would need to hire another 300 million people just…](https://sms4smile.com/quotes/hasan-m-elahi/if-300-million-people-were-to-offer-up-the-details-of-their-private/)

[Hasan M. Elahi](https://sms4smile.com/quotes/author/hasan-m-elahi/)

> [“When a country goes from a population of 3 million to a population of 300 million (to say nothing of the radical increase in…](https://sms4smile.com/quotes/thomas-piketty/when-a-country-goes-from-a-population-of-3-million-to-a-population-of/)

[Thomas Piketty](https://sms4smile.com/quotes/author/thomas-piketty/)

> [The population of the U.S. is nearly 300 million, including many of the best educated, most talented, most resourceful, humane people on earth. By…](https://sms4smile.com/quotes/richard-dawkins/the-population-of-the-u-s-is-nearly-300-million-including-many-of-the/)

[Richard Dawkins](https://sms4smile.com/quotes/author/richard-dawkins/)

> [Kennedy said that if we had nuclear war we'd kill 300 million people in the first hour. McNamara, who is a good businessman and…](https://sms4smile.com/quotes/norman-thoma/kennedy-said-that-if-we-had-nuclear-war-we-d-kill-300-million-people/)

Norman Thoma

> [Obama is for the 300 million souls of the United States what Andreas Lubitz was for the 150 souls of the Germanwings flight...](https://sms4smile.com/quotes/michele-bachmann/obama-is-for-the-300-million-souls-of-the-united-states-what-andreas/)

[Michele Bachmann](https://sms4smile.com/quotes/author/michele-bachmann/)

> [Someone, or some group in George W. Bush administration, took 300 million people to war against their will, based on a very giant lie.…](https://sms4smile.com/quotes/martha-stout/someone-or-some-group-in-george-w-bush-administration-took-300/)

[Martha Stout](https://sms4smile.com/quotes/author/martha-stout/)

> [With 300 million people in America, you can fail to impress 299 million of them and still go platinum.](https://sms4smile.com/quotes/kareem-abdul-jabbar/with-300-million-people-in-america-you-can-fail-to-impress-299/)

[Kareem Abdul-Jabbar](https://sms4smile.com/quotes/author/kareem-abdul-jabbar/)

> [You cannot have 300-some million Americans - and really, right, the global citizenry be at risk of having their phone conversations intercepted with a…](https://sms4smile.com/quotes/ted-lieu/you-cannot-have-300-some-million-americans-and-really-right-the/)

[Ted Lieu](https://sms4smile.com/quotes/author/ted-lieu/)

## More by Dave McClure

> [For the most effective pitch, focus 80% on the problem, 20% on the solution.](https://sms4smile.com/quotes/dave-mcclure/for-the-most-effective-pitch-focus-80-on-the-problem-20-on-the/)

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

> [I think you want to show a level of transparency that breeds trust. You don't want to show a level of desperation that breeds…](https://sms4smile.com/quotes/dave-mcclure/i-think-you-want-to-show-a-level-of-transparency-that-breeds-trust/)

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

> [I don't know if we're doing the optimal things that we can to try and connect different people on the planet with different points…](https://sms4smile.com/quotes/dave-mcclure/i-don-t-know-if-we-re-doing-the-optimal-things-that-we-can-to-try-and/)

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

> [I think 'Shark Tank' is targeting companies that are really trying to raise their very first dollar. A lot of them aren't really tech…](https://sms4smile.com/quotes/dave-mcclure/i-think-shark-tank-is-targeting-companies-that-are-really-trying-to/)

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

> [I want to invest in a functional product that people are using.](https://sms4smile.com/quotes/dave-mcclure/i-want-to-invest-in-a-functional-product-that-people-are-using/)

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

> [The earlier you invest, the higher that attrition rate is because it's compounded. We have a more scientific method of investment.](https://sms4smile.com/quotes/dave-mcclure/the-earlier-you-invest-the-higher-that-attrition-rate-is-because-it-s/)

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

> [Food tech has been kind of an area that we have been making a number of investments in. Kind of a big boring industry,…](https://sms4smile.com/quotes/dave-mcclure/food-tech-has-been-kind-of-an-area-that-we-have-been-making-a-number/)

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

> [The last 10 to 20 years you’d think that it has been all about VCs making money, because that’s all we hear about. But…](https://sms4smile.com/quotes/dave-mcclure/the-last-10-to-20-years-you-d-think-that-it-has-been-all-about-vcs/)

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

> [There's been entrepreneurs working in the Valley for probably 50-60 years. It's not to say that you can't create that in other places, but…](https://sms4smile.com/quotes/dave-mcclure/there-s-been-entrepreneurs-working-in-the-valley-for-probably-50-60/)

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

> [I figured maybe I had some talent as an investor… since it seemed like I was only a half-assed entrepreneur.](https://sms4smile.com/quotes/dave-mcclure/i-figured-maybe-i-had-some-talent-as-an-investor-since-it-seemed-like/)

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

> [I think you'll see a lot more people in the Valley get more involved in politics.](https://sms4smile.com/quotes/dave-mcclure/i-think-you-ll-see-a-lot-more-people-in-the-valley-get-more-involved/)

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

> [We are trying to build large, lasting businesses.](https://sms4smile.com/quotes/dave-mcclure/we-are-trying-to-build-large-lasting-businesses/)

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

> [We often say if you have traction, lead with traction. Talk about specific customers, usage numbers, revenue metrics - anything like that that really…](https://sms4smile.com/quotes/dave-mcclure/we-often-say-if-you-have-traction-lead-with-traction-talk-about/)

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

> [There's a mathematical way to get success.](https://sms4smile.com/quotes/dave-mcclure/there-s-a-mathematical-way-to-get-success/)

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

> [If you already have some amount of significant traction with customers, either in usage or in revenue, you should very quickly try and get…](https://sms4smile.com/quotes/dave-mcclure/if-you-already-have-some-amount-of-significant-traction-with/)

[Dave McClure](https://sms4smile.com/quotes/author/dave-mcclure/)

[Explore all 56 Dave McClure quotes ](https://sms4smile.com/quotes/author/dave-mcclure/)

## More Bubble quotes

> [What we're supposed to do as actors is be able to portray real human beings and emotions. And if you grow up in this…](https://sms4smile.com/quotes/emily-browning/what-we-re-supposed-to-do-as-actors-is-be-able-to-portray-real-human/)

[Emily Browning](https://sms4smile.com/quotes/author/emily-browning/)

> [“Recluses won’t find purpose living out their days in a sacred bubble. Partake in commerce, start working out, volunteer, go on a mission. Do…](https://sms4smile.com/quotes/m-j-demarco/recluses-won-t-find-purpose-living-out-their-days-in-a-sacred-bubble/)

[M.J. DeMarco](https://sms4smile.com/quotes/author/m-j-demarco/)

> [“But you couldn't unpop a bubble.”](https://sms4smile.com/quotes/kami-garcia/but-you-couldn-t-unpop-a-bubble/)

[Kami Garcia](https://sms4smile.com/quotes/author/kami-garcia/)

> [I don't even know what that means. People who get credit have to get it from somewhere. Does a credit bubble mean that people…](https://sms4smile.com/quotes/eugene-fama/i-don-t-even-know-what-that-means-people-who-get-credit-have-to-get/)

[Eugene Fama](https://sms4smile.com/quotes/author/eugene-fama/)

> [You know, as an only child, you're kind of in a bubble, and there are all sorts of things about my childhood that I…](https://sms4smile.com/quotes/anonymous/you-know-as-an-only-child-you-re-kind-of-in-a-bubble-and-there-are/)

[Anonymous](https://sms4smile.com/quotes/author/anonymous/)

> [“As a bubble you cannot change the world, this is obvious, but you can still make a child happy! Even the most worthless things…](https://sms4smile.com/quotes/mehmet-murat-ildan/as-a-bubble-you-cannot-change-the-world-this-is-obvious-but-you-can/)

[Mehmet Murat ildan](https://sms4smile.com/quotes/author/mehmet-murat-ildan/)

> [The media bubble is the ultimate symbol of what's wrong with this country.](https://sms4smile.com/quotes/steve-bannon/the-media-bubble-is-the-ultimate-symbol-of-what-s-wrong-with-this/)

[Steve Bannon](https://sms4smile.com/quotes/author/steve-bannon/)

> [When I found out about being cast in 'Spider-Man,' it was like this bubble developed around me. I was floating in it for a…](https://sms4smile.com/quotes/andrew-garfield/when-i-found-out-about-being-cast-in-spider-man-it-was-like-this/)

[Andrew Garfield](https://sms4smile.com/quotes/author/andrew-garfield/)

> [Trump has manufactured the first-ever Celebrity Immunity Bubble - rendering him incapable of offense, no matter whom he offends. It's brilliant.](https://sms4smile.com/quotes/greg-gutfeld/trump-has-manufactured-the-first-ever-celebrity-immunity-bubble/)

[Greg Gutfeld](https://sms4smile.com/quotes/author/greg-gutfeld/)

> [ “The Bradford Exchange—a knockoff of \[Joseph\] Segel’s \[Franklin Mint\] business—created a murky secondary market for its collector plates, complete with advertisements featuring its “brokers”… ](https://sms4smile.com/quotes/zac-bissonnette/the-bradford-exchange-a-knockoff-of-joseph-segel-s-franklin-mint/)

Zac Bissonnette

> [It was 1999, and we were building a way for college kids to create online profiles for the purpose of sharing... with employers. Oops.…](https://sms4smile.com/quotes/eric-ries/it-was-1999-and-we-were-building-a-way-for-college-kids-to-create/)

[Eric Ries](https://sms4smile.com/quotes/author/eric-ries/)

> [The end of the 'tech bubble' in the year 2000 is, of course, widely recognized, as the NASDAQ stock index erased three-quarters of its…](https://sms4smile.com/quotes/david-autor/the-end-of-the-tech-bubble-in-the-year-2000-is-of-course-widely/)

[David Autor](https://sms4smile.com/quotes/author/david-autor/)

> [It's like simulating earthquakes: we can over and over study a bubble, crash, bubble, crash. Then we can see mathematically if there's some regular…](https://sms4smile.com/quotes/colin-camerer/it-s-like-simulating-earthquakes-we-can-over-and-over-study-a-bubble/)

[Colin Camerer](https://sms4smile.com/quotes/author/colin-camerer/)

> [Only lets certain people in his bubble...you know who u r...so come on in...if your not one of them...stay the HELL OUT!!!](https://sms4smile.com/quotes/nishan-panwar/only-lets-certain-people-in-his-bubble-you-know-who-u-r-so-come-on-in/)

[Nishan Panwar](https://sms4smile.com/quotes/author/nishan-panwar/)

> [Every bubble has two components: something - some real trend, and a misconception about that trend.](https://sms4smile.com/quotes/george-soros/every-bubble-has-two-components-something-some-real-trend-and-a/)

[George Soros](https://sms4smile.com/quotes/author/george-soros/)

Browse all 325 Bubble quotes

```json
{
    "@context": "https://schema.org",
    "@graph": [
        {
            "@type": "Quotation",
            "text": "A bubble in early-stage funding means maybe there's $300 million at work when maybe there should be $150, as opposed to a bubble in late-stage funding which means there's $20 billion at work when there should be $3.",
            "creator": {
                "@type": "Person",
                "name": "Dave McClure"
            },
            "isPartOf": {
                "@id": "https://sms4smile.com/quotes/#website"
            },
            "url": "https://sms4smile.com/quotes/dave-mcclure/a-bubble-in-early-stage-funding-means-maybe-there-s-300-million-at/",
            "about": {
                "@type": "Thing",
                "name": "Bubble"
            },
            "@id": "https://sms4smile.com/quotes/dave-mcclure/a-bubble-in-early-stage-funding-means-maybe-there-s-300-million-at/#quotation",
            "image": {
                "@type": "ImageObject",
                "@id": "https://sms4smile.com/quotes/i/432/dave-mcclure-12214_bubble_a-bubble-in-early-stage-funding-means-ma_530190.png",
                "contentUrl": "https://sms4smile.com/quotes/i/432/dave-mcclure-12214_bubble_a-bubble-in-early-stage-funding-means-ma_530190.png",
                "url": "https://sms4smile.com/quotes/i/432/dave-mcclure-12214_bubble_a-bubble-in-early-stage-funding-means-ma_530190.png",
                "width": 1080,
                "height": 1080,
                "caption": "“A bubble in early-stage funding means maybe there's $300 million at work when maybe there should be $150, as…” — Dave McClure",
                "creditText": "SMS4Smile Quotes",
                "creator": {
                    "@id": "https://sms4smile.com/quotes/#organization"
                }
            }
        },
        {
            "@type": "BreadcrumbList",
            "itemListElement": [
                {
                    "@type": "ListItem",
                    "position": 1,
                    "name": "Home",
                    "item": "https://sms4smile.com/"
                },
                {
                    "@type": "ListItem",
                    "position": 2,
                    "name": "Quotes",
                    "item": "https://sms4smile.com/quotes/"
                },
                {
                    "@type": "ListItem",
                    "position": 3,
                    "name": "Dave McClure",
                    "item": "https://sms4smile.com/quotes/author/dave-mcclure/"
                },
                {
                    "@type": "ListItem",
                    "position": 4,
                    "name": "A bubble in early-stage funding means...",
                    "item": "https://sms4smile.com/quotes/dave-mcclure/a-bubble-in-early-stage-funding-means-maybe-there-s-300-million-at/"
                }
            ],
            "@id": "https://sms4smile.com/quotes/dave-mcclure/a-bubble-in-early-stage-funding-means-maybe-there-s-300-million-at/#breadcrumb"
        },
        {
            "@type": "WebSite",
            "@id": "https://sms4smile.com/quotes/#website",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "publisher": {
                "@id": "https://sms4smile.com/quotes/#organization"
            }
        },
        {
            "@type": "Organization",
            "@id": "https://sms4smile.com/quotes/#organization",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "logo": {
                "@type": "ImageObject",
                "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png",
                "width": 512,
                "height": 512
            }
        }
    ]
}
```