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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso -- Ambiguity Effect
Description: Ambiguity Effect Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The ambiguity effect is a bias defined by Wikipedia as the tendency to avoid options for which the probability of a favorable outcome is unknown. Startups are risky and make proposals about the outcome of their deal. Investors avoid engaging with startups when they do not have confidence in the proposed outcome. Startups should make clear what is currently known about the business and the potential prospects of the deal. By clarifying the risks associated with the deal t...