Startup Funding Espresso Availability Cascade
Availability Cascade Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The availability cascade is a cognitive bias defined by as a self-reinforcing cycle that explains the development of certain kinds of collective beliefs.\xa0 Investors who repeat a belief among themselves will reinforce that belief even if it\u2019s not true. One investor will state his recollection as a fact to a group of investors. Another investor repeats the statement as a fact. As this continues around the group the initial recollected memory becomes a fact that every investor believes. To overcome the availability cascade presume nothing is true until proven.\xa0 For example, if the startup doesn\u2019t state revenue numbers, then assume they have no revenue. In the diligence process write out the assumptions you have and then test each one by going through the dataroom to verify or debunk the assumptions. This applies to the team, the product, the revenue, and the fundraising details in particular. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .