By Aaron Pressman and Adam Lashinsky
July 11, 2017

Yesterday I wrote about my sense of déjà vu when reading about “mindless buying” of tech stocks. I’ve seen it before, you see. More than once.

I also remember how I knew things had gotten crazy during the dot-com bubble. When things were merely warm I had carved out a niche of reading the securities filings of companies that proposed to go public. In many instances, I had met with the company already and knew their bankers and investors. I was in a good position to comment on their prospects. The IPO prospectuses were chock full of truthful information that showed a company’s history and promise.

I knew the situation had gotten out of control, though, when new companies filed to go public and then listed their shares without my ever having heard of them. The volume was simply too great for me to keep up.

I thought of that when reading about the near-demise of a company called Faraday Future, whose bold claims Fortune’s Kirsten Korosec has documented over the past couple years. Faraday promised to build a new electric car and a giant factory in Nevada, creating oodles of jobs. Monday it said that due to a lack of funds it won’t do either any time soon.

Most readers won’t have heard of Faraday and never will need to. It’s a good reminder not to get too attached to outrageous claims or even pronouncements of large funding rounds by venture capitalists. Raising money, while not easy, is a relative snap compared to building a company.

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A reader asked if Fortune will be livestreaming its Brainstorm Tech conference in Aspen next week. The answer is yes. All mainstage sessions-read the agenda here-will be broadcast live on Fortune.com.

Adam Lashinsky
@adamlashinsky
adam_lashinsky@fortune.com

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