How One Startup Faked Millions of Users to Raise Money

The video discusses the concept of 'fake it till you make it' in the context of startups, using the example of IRL, a social media app that inflated its user numbers. It highlights the legal and ethical issues faced by companies that engage in such practices, including the downfall of IRL and the investigation by the SEC. The video also covers growth hacking strategies, the challenges of building a genuine user base, and the prevalence of fake engagement on the Internet, facilitated by AI. It concludes with a discussion on the dead Internet theory, which suggests much online content is artificially generated.

What was the main issue with the social media app IRL?

• It was only available in certain countries.

• It had a poor user interface.

• It was too expensive to maintain.

• Most of its users were fake.

What is a common pressure faced by startups that take venture capital?

• They have to grow rapidly or face failure.

• They must immediately become profitable.

• They need to hire a large team quickly.

• They must expand internationally.

What unethical practice is described as a method to attract investment?

• Overpricing products.

• Offering free services indefinitely.

• Creating fake user accounts.

• Underreporting expenses.

What is the 'dead Internet theory' about?

• Most online content is generated by AI.

• Social media platforms are losing users.

• The internet is no longer used by people.

• The internet is too slow for modern needs.

Which of the following companies was mentioned as inflating its user numbers?

• Spotify

• LinkedIn

• Aussie

• Snapchat