Levels of Processing Effect

Levels of Processing Effect

March 7, 2023 by investor

Levels of Processing Effect

The level of processing effect is a phenomenon defined by Wikipedia whereby different methods of encoding information into memory have different levels of effectiveness.

Different forms of communication and listener processing will affect the investor’s ability to remember.

Shallow learning results in short-term knowledge retention.

Deep learning results in long-term knowledge retention.

It’s important to understand one’s learning style.

To overcome the levels of processing effect, consider the following:

Focus on the core message and internalize it.

Apply critical thinking to the process and ask questions throughout the pitch.

Review the key points to see what you can remember and what you missed.

Consider the palace method in which you build a mental picture of a room and fill it with objects that remind you of the key points of the pitch.

It’s important to develop listening and learning skills when analyzing startup deals.


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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.