Startup Funding Espresso -- Groupthink
Groupthink Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Groupthink is a cognitive bias defined by Wikipedia as the psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.\xa0 Since many investors invest as a group and use social proof as part of their decision process, it\u2019s easy to fall into the trap of groupthink. In pitch sessions, investors often follow the lead of other investors so as to fit in even if they don\u2019t necessarily find the startup to be attractive.\xa0 To overcome groupthink, build diversity into your group with different skills and investment strategies. Maintain a neutral position throughout the process.\xa0 Encourage discussion among the members to surface counterarguments and questions. Schedule time for independent research to find out more about the deal from other sources. Dedicate someone as the devil\u2019s advocate to vocalize counter opinions. Look for the naysayers and encourage a healthy debate with alternative points of view about the deal. \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 .