Startup Funding Espresso -- Gambler's fallacy
Gambler's fallacy Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The gambler\u2019s fallacy is a cognitive bias defined by Wikipedia\xa0as the tendency to think that future probabilities are altered by past events when in reality they are unchanged.\xa0 Investors bet on startups that follow what other recent successful startups have done even though the potential of the startup is no better than before. For example, after a startup proves successful in a sector, investors rush to that sector to fund similar startups. While the market may be ripe for startup success there are many other factors that come into play to achieve a successful exit. To overcome the gambler's fallacy, the investor should focus on the data describing the future.\xa0 Past events don\u2019t predict future success. Each startup is unique and success is driven by many factors. Investors should be aware of the gambler's fallacy and judge each startup on its merits. \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 .