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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – Disposition Effect
Description: Disposition Effect Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Disposition effect is a cognitive bias defined by Wikipedia as the tendency to sell an asset that has accumulated in value and resist selling an asset that has declined in value. Investors find it difficult to sell startup investments since they are no longer growing but hold the promise of “coming back.” Investors fund many startups most of which will not return the original value. Many investors hold onto the investment with the hope that they eventually will achie...