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Investor Connect Podcast


Investor Connect is for investors interested in learning more about investing in startup and growth stage companies. Experienced investors share their experiences and advice with those who are considering an investment into startups and growth companies. It includes a podcast series of interviews with investors to inform others about the process of funding startups as well as a resource list and a discussion board.  

Topics include sourcing, analyzing, and researching companies. Other topics include valuations, terms Sheets, board of directors, board of advisors, due diligence, syndicates, venture capital, angels, angel networks, family offices, crowdfunding, exits, and more.

Investor Connect is a community program. We welcome your suggestions for speakers and topics which you can send to us through the Contact page. No registration is required to use the resources.  Discussion boards are available to post and answer questions about startups and growth company investing through which registration is required.

Investor Connect is a program under the Texas Open Angel Network which is a 501(c3) non-profit dedicated to the education around startup funding.

Disclaimer: Hall T. Martin is the Director of Investor Connect which is dedicated to the education of investors for early stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Jan 25, 2023

Availability Cascade

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

The availability cascade is a cognitive bias defined by Wikipedia as a self-reinforcing cycle that explains the development of certain kinds of collective beliefs. 

Investors who repeat a belief among themselves will reinforce that belief even if it’s not true.

One investor will state his recollection as a fact to a group of investors.

Another investor repeats the statement as a fact.

As this continues around the group the initial recollected memory becomes a fact that every investor believes.

To overcome the availability cascade presume nothing is true until proven. 

For example, if the startup doesn’t state revenue numbers, then assume they have no revenue.

In the diligence process write out the assumptions you have and then test each one by going through the dataroom to verify or debunk the assumptions.

This applies to the team, the product, the revenue, and the fundraising details in particular.

 

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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