Ganesan described kingmaking through rapid successive markups as Soros-style reflexivity that works while revenue is real but eventually stops. Listen
In Ganesan's account, fast revenue growth leads to a quick markup, which brings more capital, press and talent, which drives faster growth and another markup. He warned that copycat founders and investors come to believe the markup itself is the secret, and that the dynamic then drives the market cycle until it stops. He added that no one knows how or when it will stop, and that until it does 'a lot of people can look very smart'.
“one thing we know from Soros is that all reflexivity will eventually stop. We just don't know how and when.”
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