In a recent and characteristic move, MSCHF, a creatively driven and well-funded studio known for its bold concepts, is playfully commenting on the venture capital landscape – and perhaps even media outlets like TechCrunch. The company has established a new, independent entity around a remarkably simple application and successfully secured an undisclosed amount of seed funding from a legitimate venture capital firm, resulting in a striking $200 million valuation.

Currently, finalizing the necessary legal documentation to officially validate this valuation appears to be a more significant challenge than the technical development of the app itself. Push Party functions much like the earlier app “Yo,” offering a single, straightforward feature: it enables users to activate a button that sends a push notification to all other app users. The app lacks social features like friend lists, groups, or influencer integrations. It essentially consists of a single button that generates a substantial volume of notifications.

Consistent with MSCHF’s overall approach, the app is specifically engineered for rapid dissemination and widespread adoption. Their previous application, “Finger on the App,” initiated a popular online competition where participants maintained contact with their phone screens for extended periods to compete for prizes. A unique aspect of this launch is the anonymity of button presses, as users can choose any username they desire, and many are opting for the names of well-known celebrities.

Push Party clearly draws inspiration from Yo, and also mirrors its initial success, which was characterized by a surprisingly high valuation for a product with extremely limited functionality. In 2014, Yo raised $1.5 million based on a $10 million valuation. However, achieving a $10 million valuation for a basic concept in 2020 had become more commonplace. Consequently, MSCHF significantly increased the stakes, securing a $200 million valuation for Push Party in this funding round.

A $200 million valuation once indicated substantial progress, but inflated valuations have become increasingly frequent as investors compete for promising opportunities. Earlier this year, audio platform Clubhouse attracted attention with a $100 million early valuation, and just recently, Roam, a note-taking application with a dedicated user base, completed a seed round at a $200 million valuation.

Founders Fund provided the funding for Push Party’s round, with Principal Trae Stephens leading the investment. The reason MSCHF was able to attract a genuine investor from a reputable firm for this unconventional project becomes clear when considering Stephens’ prior investment in MSCHF itself. Stephens appears to be fully aware of, and participating in, the underlying concept.

In a deliberately ironic press statement, Stephens commented, “Initially, we had some reservations about the valuation, but I instructed my team to proceed enthusiastically with any offer below $250 million.”

Is this situation legitimate? MSCHF maintains that they completed all the necessary legal procedures for incorporating Push Party and securing this funding. The precise amount of the investment remains somewhat ambiguous; the team declined to disclose specific figures, although they confirmed to me that the round exceeded $100.

While the company has refrained from explicitly stating its intentions, it seems a primary goal is to highlight the current trend of inflated valuations, where seemingly arbitrary numbers are often perceived as indicators of value or innovation. A prestigious firm’s investment frequently generates media coverage, attracts further investment, encourages job applications, and, naturally, inspires journalistic attention.