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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso -- IKEA effect
Description: IKEA effect Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The IKEA effect is a cognitive bias defined by Wikipedia as the tendency for people to place a disproportionately high value on objects that they partially assembled themselves, such as furniture from IKEA, regardless of the quality of the end product. Investors will have more affinity for a startup if they’ve had a hand in helping build it. This leads to bad investment decisions as the investor is supporting the work they put into the startup even th...