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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 27, 2023

Confirmation Bias

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

Confirmation bias is a cognitive bias defined by Wikipedia as the tendency to search for, interpret, focus on and remember information in a way that confirms one's preconceptions.

Investors bring their recent investment experiences to fund new startups.

If the investor recently lost their investment in a deal in a certain sector, then the investor will most likely look unfavorably at other deals in that sector.

On the other hand, if the investor found success in investing in a particular type of company, then most likely the investor will look for similar companies.

It’s important to understand these forces when setting up an investment thesis and criteria for funding startups.  

To overcome confirmation bias consider the following:

Try to view the deal from other angles than you traditionally use.

Ask other investors for their views on it and note the ones with strong objections.

Discuss your thought process with other investors to see where you might be off the mark.

Expand your connections to include people with other experiences and viewpoints.

Give prominence in your thinking to views divergent from your own. 

 

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

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