malinvestment
/ˌmælɪnˈvɛstmənt/
Definition
The allocation of capital into unproductive or inefficient areas due to market trends or hype rather than sound economic fundamentals.
Etymology
The word is a hybrid construction derived from the Latin prefix 'mal-' (meaning 'bad' or 'poorly') and the noun 'investment.' It entered economic discourse in the 20th century to describe investment choices that fail to create genuine economic growth.
In the news
The article uses the term to describe how venture capitalists are mindlessly pouring money into mediocre AI startups simply to follow a trend. This pattern ignores more deserving, innovative firms, ultimately wasting capital on projects unlikely to yield long-term value.
British venture capital funding is booming – if you are an AI firm
Read the full article ↗The Observer