Startup Funding Espresso -- IKEA effect
IKEA effect Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The IKEA effect is a cognitive bias defined by Wikipedia as the tendency for people to place a disproportionately high value on objects that they partially assembled themselves, such as furniture from IKEA, regardless of the quality of the end product. Investors will have more affinity for a startup if they\u2019ve had a hand in helping build it. This leads to bad investment decisions as the investor is supporting the work they put into the startup even though the startup doesn\u2019t meet their criteria for funding.\xa0 To overcome the IKEA effect the investor should separate their personal contribution from the investment decision. Compare the startup to others on each aspect of the business such as team, traction, and market. Review the data to see what it says about the startup. Seek out independent analysis and perspective about the startup. Check to see how it compares against your investment thesis and criteria. The IKEA effect is subtle and can distort one\u2019s perceptions. \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 .