Ambiguity Effect

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

The ambiguity effect is a bias defined by Wikipedia as the tendency to avoid options for which the probability of a favorable outcome is unknown.

Startups are risky and make proposals about the outcome of their deal. 

Investors avoid engaging with startups when they do not have confidence in the proposed outcome.

Startups should make clear what is currently known about the business and the potential prospects of the deal.

By clarifying the risks associated with the deal the startup makes it easier for investors to evaluate it.

For each risk in the deal, the startup should identify it and make clear how they will mitigate it. 

If there are too many risks and they are not clearly articulated then investors will not engage with the deal.

Missing information often leads investors to the ambiguity effect. 

Startups should cover all the basic elements of the business including the team, the market, the business model, and current traction. 

Startups pitching their deal must convince the investor that the proposed outcome is certain to happen. 

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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On this episode of Investor Connect, Hall welcomes Yaniv Sneor, Founder of Mid Atlantic Bio Angels (MABA).

Mid Atlantic Bio Angels is a NY-based life science angel investment group that was formed in 2012 with the goal of bringing together the expertise required by investors to make informed investment decisions in scientific, regulatory, and commercially-complex healthcare investment opportunities. MABA invests exclusively in early-stage, private life science companies (primarily therapeutics, devices, diagnostics, and some digital health), with no geographic restrictions.

Participation in MABA is limited to accredited individuals and corporate MABA members who are actively involved in company screenings and diligence, requiring a time and financial commitment, as well as scientific, regulatory, and commercial expertise in the life sciences.

Yaniv Sneor is one of the founders of MABA, where he also administers MABA’s internal investment pools, and MABA’s co-investment Sidecar Fund, for non-MABA member investors.

Yaniv is originally a physicist, who made the transition into the business world about 30 years ago, at which point he took the helm of his first company. Mr. Sneor has senior merger, acquisition, capitalization, and turnaround leadership experience with companies ranging from start-ups to growth. He has held positions of CEO, COO, President, and General Manager at a number of companies, including a bio-informatics company, a surgical laser company, a manufacturing and distribution company, a software and network integration company, and several others.

Yaniv discusses what it means to be a life science angel investment group, the challenges that they face, and the rewards of working in this field. 

Visit Mid Atlantic Bio Angels at bioangels.net, and www.linkedin.com/company/mid-atlantic-bio-angels.

Reach out to Yaniv at yaniv@bioangels.net, www.linkedin.com/in/yaniv-sneor-5534131 , and on twitter.com/ysneor?lang=en. 

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https:/_/tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.