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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 24, 2023

Bandwagon Effect

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

The bandwagon effect is a cognitive bias defined by Wikipedia as the tendency to do (or believe) things because many other people do (or believe) the same.

Investors follow the lead of others. The more investors following a deal, the more investors are willing to join.

Investors look for lead investors who will negotiate the terms and diligence it.

To avoid the bandwagon effect in funding a startup, look for experienced investors to follow 

Review carefully the diligence report to see if it matches your expectations.

Verify stated information with other sources.

Challenge the assumptions to understand the deal in more detail. 

For example, if the startup indicates they have revenue, investigate further the quality of that revenue.  

Is it recurring revenue?  Is it concentrated revenue?

Avoid situations where the investors are excited about the deal but no one is actually leading the deal and no one is reviewing the diligence. 


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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Music courtesy of Bensound.