Want to create an interactive transcript for this episode?
Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso -- Default Effect
Description: Default Effect Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The Default effect is defined by Wikipedia as when given a choice between several options, the tendency to favor the default one. It’s also called the Status Quo bias in which people choose the default option because it’s less risky. Startups should position their deal as the default so that in case of a tie, the investor will choose their startup over others. To make your deal the default, consider the following: In many investment groups, the...