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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso -- Hindsight Bias
Description: Hindsight Bias Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The hindsight bias is defined by Wikipedia as the tendency to see past events as being predictable at the time those events happened. When an investor sees a startup fail or succeed, early indicators come back to the investor's mind. In some cases, investors selectively remember certain events or facts that later confirm the outcome. This can lead to overconfidence. If one believes he can predict the outcome then he’ll make mistakes erroneously thinking he can predict the o...