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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – Dunning-Kruger Effect
Description: Dunning-Kruger Effect Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The Dunning-Kruger effect is a cognitive bias defined by Wikipedia as the tendency for unskilled individuals to overestimate their own ability and the tendency for experts to underestimate their own ability. Investors reviewing deals in an unfamiliar sector often consider their skills to be greater than they are. Investors who are familiar with a sector often don’t realize how strong their perceptions are. To overcome the Dunning-Kruger effect, an investor should slow down and take time to ana...