Excessive Capital Allocation to Controversial Marketing (high) Avi Schiffmann's startup, Friend, spent $1 million on a single, controversial ad campaign (subway ads that drew outrage and graffiti) despite having 'barely $7 million in venture capital.' This represents approximately 14.3% of the total VC funding spent on one marketing effort, which the CEO himself called a 'huge gamble.'. Extreme Discrepancy in Product Adoption Metrics (critical) There is a critical inconsistency in reported product adoption. The CEO claimed (5 days ago, approx. Oct 9, 2025) that '200,000 People Have Purchased the Controversial AI Friend Necklace.' However, an article published just days earlier (Oct 6, 2025) stated that 'only about 1,000 Friend pendants have been activated.' This 200:1 discrepancy suggests either massive fulfillment/activation failure or highly misleading sales figures.. Intentional Cultivation of Negative Public Reputation and Backlash (high) The CEO intentionally pursued a controversial marketing strategy that resulted in 'outrage, graffiti and attention.' Schiffmann stated he 'purchased the zeitgeist' and enjoys the angry reaction, being labeled 'New York’s Most Hated Tech Founder.' This strategy courts brand toxicity and risks alienating mainstream consumers and partners.. Excessive Spending on Non-Core Asset (Domain Name) (high) The company spent $1.8 million of its venture capital funding solely to purchase the URL 'Friend.com.' This represents a significant capital outlay (over 25% of the reported $7 million VC funding) on a non-core asset, contributing to the high burn rate.