What is the "Vibe Economy?"

Hey, it’s David!

We like to think business success is driven by hard numbers; revenue, profitability, competitive positioning. But let’s be honest… sometimes, deals hinge on something much less tangible.

A feeling. A narrative. A vibe.

And it’s not just the markets. Why did GameStop’s stock skyrocket despite no fundamental change? Why do some brands command premium pricing while others, despite having a superior product, struggle for attention?

Perhaps you have been hearing more and more about the Vibe Economy. Social media has created it. Think of celebrity status for simply being in a viral video. It’s where perception isn’t just influencing reality, it’s becoming reality.

Something didn’t feel right with that landing…

A while back, while returning from a networking event in Seattle, I sat next to a founder who had a solid business. On paper, it checked every box for an acquisition.

But something felt… off.

There was no buzz around the company. The industry chatter wasn’t great. Even the management team seemed uncertain about their own future.

The deal stalled. Not because of the numbers, but because the vibe wasn’t right.

This isn’t just anecdotal. Buyers are humans. Investors are humans. And humans don’t just buy businesses… they buy momentum, narrative, and perceived potential.

The Vibe Economy: Not a Trend, But a Reality

This isn’t some abstract, feel-good concept. The Vibe Economy is a becoming an entrenched shift in how business value is perceived and priced.

It’s why companies with strong communities, compelling brand stories, or high cultural relevance can outperform competitors with better financials.

• A business with a dedicated audience and strong founder presence can command a premium, even if its numbers aren’t the best.

• A startup can get outsized funding because it "feels like the future," while an established player gets overlooked.

• A brand that loses credibility online can see its valuation drop, before financials ever reflect it.

This is happening right now across all industries. Consider the following:

Liquid Death – Selling Water with Edge

Liquid Death sells canned water - yes, water - but built a brand around punk rock, irreverence, and viral marketing. Their product isn’t fundamentally different from other bottled water, but their vibe has attracted cult-like followers, huge social engagement, and a $1.4B+ valuation.
👉 The product is water. The vibe is rebellion. Investors bought the momentum.

Figma’s $20B Exit Before Profitability

Figma was acquired by Adobe for $20B - despite being relatively early-stage and not yet profitable. Why? It had a developer-first vibe, grassroots community love, and was seen as “the future of design collaboration.”
👉 The vibe wasn’t just good—it was future-forward. That vibe drove a massive premium.

WeWork – The Vibe Collapsed

WeWork’s early valuation soared because it was seen as a tech disruptor, despite being a real estate business. Once the vibe cracked - due to leadership drama and a loss of narrative control - its valuation plummeted before revenue took a hit.
👉 The vibe inflated the value. Losing it nearly killed the company.

Why Should You Care?

Because the Vibe Economy isn’t something to dismiss… it’s something to understand and leverage.

• If you’re an operator, your company’s perceived momentum can directly impact its future valuation.

• If you’re a founder, shaping your brand’s narrative isn’t optional… it’s essential.

• If you’re an investor or buyer, understanding what “feels like the future” before the market catches on can lead to outsized returns.

This isn’t about the ethereal… it’s about positioning.

If perception equals reality in business today, then the companies that actively shape their perception are best positioned to win.

Something to think about.

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Thank you!

David