Startup Funding Espresso Confirmation Bias
Confirmation Bias Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Confirmation bias is a cognitive bias defined by as the tendency to search for, interpret, focus on and remember information in a way that confirms one's preconceptions. Investors bring their recent investment experiences to fund new startups. If the investor recently lost their investment in a deal in a certain sector, then the investor will most likely look unfavorably at other deals in that sector. On the other hand, if the investor found success in investing in a particular type of company, then most likely the investor will look for similar companies. It\u2019s important to understand these forces when setting up an investment thesis and criteria for funding startups.\xa0\xa0 To overcome confirmation bias consider the following: Try to view the deal from other angles than you traditionally use. Ask other investors for their views on it and note the ones with strong objections. Discuss your thought process with other investors to see where you might be off the mark. Expand your connections to include people with other experiences and viewpoints. Give prominence in your thinking to views divergent from your own.\xa0 \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 .