Thu, 16 March 2023
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
The attribute substitution is a bias defined by Wikipedia that occurs when an individual has to make a judgment that is computationally complex and instead substitutes a more easily calculated heuristic attribute.
Startups presenting a complex concept such as how their technology works should replace it with a heuristic or analogy that is easier to understand.
Complex concepts can be difficult to communicate to investors in a pitch.
Instead of explaining the concept in detail, the startup should replace it with an analogy or metaphor to explain it.
The investor doesn’t need to know the specific details of how a concept works but rather why it’s important as there’s typically not enough time to explain it.
In discussing intellectual property it is better to highlight the benefits of the technology rather than how it works in detail.
Oftentimes the technology is proprietary and kept as a trade secret.
Explain complex concepts with analogies to show the benefits and importance of the concept.
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