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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – Clustering Illusion
Description: Clustering Illusion Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Clustering illusion is a cognitive bias defined by Wikipedia as the tendency to overestimate the importance of small runs, streaks, or clusters in large samples of random data (that is, seeing phantom patterns). Investors will see a few deals in a space exit and consider it a hot spot for success when in the big picture the sector is no better than any other. Sectors rotate in and out of favor based on investors' interest in funding that...