They have 'real tech' - the issue is how marketable and productizable it is. This is an old, old issue in tech investing. Sometimes companies have amazing dem

They have 'real tech' - the issue is how marketable and productizable it is. This is an old, old issue in tech investing. Sometimes companies have amazing demos - but the ability to make a product is limited, or the market potential is limited. That this money is coming from far-away, is not a good sign. If they were truly hot, then the 'good firms' would be lining up. I loathe to use the term 'dumb money' but there is a lot of it flooding into the US as of late - a similar thing was happening during the 2000 bubble, but this might be more sustainable as before it was regular money from overseas, or from big-boston firms - but now - the money coming in from Asia is sustainable. All that money we send for cheap stuff has to come back and find a home somewhere. And 'dumb' is a relative/unfair term as well - for some investors, it makes much more sense to take on higher risk than others as their personal needs and opportunity are different. If you have $1B sitting in a fund and nowhere to put it, and your local government can come along and snatch it up at any time either through currency dilution or appropriation - well - all of a sudden a slightly-risky investment in Magic Leap makes much more sense than it would to say, Anderseen Horowitz.