Startup Funding Espresso Neglect of Probability
Neglect of Probability Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Neglect of probability is a cognitive bias defined by Wikipedia as the tendency to completely disregard probability when making a decision under uncertainty. Investors can be biased by their previous experiences and ignore the probability of success or failure in potential startup investments. Those who lost money on previous investments may be slow to invest while those who made money are more likely to invest. The probability of success or failure is the same for both. Recognize the probability bias in making decisions.\xa0 Intuition, while helpful, can be tricky to use in startup investing.\xa0 To overcome the bias, determine an amount to invest and a criteria. Invest according to the criteria till the funds are deployed.\xa0\xa0 By making the decisions based on specific criteria and for a predetermined amount of money, the probability factor is taken out of the process. \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 .