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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso -- Pseudo-certainty Effect
Description: Pseudo-certainty Effect Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The pseudocertainty effect is defined by Wikipedia as the tendency to make risk-averse choices if the expected outcome is positive, but make risk-seeking choices to avoid negative outcomes. As the startup finds success, the founder becomes more risk-averse because something at stake can be lost. For startups that are flailing, risk-taking becomes the norm with all projects. To overcome the pseudo-certainty effect, consider the following: Maintain awareness of the pseudo-certainty effect and how it can shift your risk-taking...