Investor Connect Podcast

Illusory Truth Effect

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

The illusory truth effect is defined by Wikipedia as the tendency to believe that a statement is true if it is easier to process, or if it has been stated multiple times, regardless of its actual veracity. 

In a startup pitch, facts repeated several times can increase believability.

Repetition reinforces a belief because it becomes easier to remember.

The easier it is to take in the more likely the investor will believe it.

This is how advertising works.

To overcome the illusory truth effect, review the proposed facts.

If the facts are not correct, then repeat it back but with the correct information such as

The market size is X, not Y, so let’s use X in our decisions.

Don’t repeat the incorrect information but instead lead with the correct information in all statements such as

Since the market is X, we can estimate the maximum revenue as Y to determine if that will lead to a sufficient profit.

It’s important to verify the data offered as facts and not assume they are true.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.


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Direct download: Illusory_Truth_Effect.mp3
Category:general -- posted at: 5:00am CDT