Startup Funding Espresso – Illusory Truth Effect

Illusory Truth Effect Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The illusory truth effect is defined by Wikipedia as the tendency to believe that a statement is true if it is easier to process, or if it has been stated multiple times, regardless of its actual veracity. In a startup pitch, facts repeated several times can increase believability. Repetition reinforces a belief because it becomes easier to remember. The easier it is to take in the more likely the investor will believe it. This is how advertising works. To overcome the illusory truth effect, review the proposed facts. If the facts are not correct, then repeat it back but with the correct information such as The market size is X, not Y, so let's use X in our decisions. Don't repeat the incorrect information but instead lead with the correct information in all statements such as Since the market is X, we can estimate the maximum revenue as Y to determine if that will lead to a sufficient profit. It's important to verify the data offered as facts and not assume they are true. 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.