Startup Funding Espresso -- Belief Bias

Belief Bias Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The belief bias is a bias defined by Wikipedia as an effect where someone's evaluation of the logical strength of an argument is biased by the believability of the conclusion Similar to the confirmation bias, investors bring their experience to the startup pitch and make judgments on the proposed pitch while underway. Investors will believe more strongly in a startup pitch if they agree with the proposed fundraising plan and exit strategy. Startups that propose outsized forecasts and out-of-the-norm exit valuations will find it harder to gain the support of the investor. To overcome the belief bias, investors should consider the market sector, the strength of the technology and product, and the skills of the team before estimating the outcome. Startups should make clear the facts behind the proposed valuation and exit plan using comparables and other factors that impact the outcome. The startup continues to grow and change so it's important to stay up to date with the latest valuations and fundraising plans. 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. _______________________________________________________ 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 [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.