Reactive Devaluation  

Reactive devaluation is defined by Wikipedia as devaluing proposals only because they purportedly originated with an adversary.

Founders skip the lessons that can be learned from competitors because they view the competitor as wrong in their approach.

This also applies to situations in which the founder discounts advice given from a source that is not well-liked.

To overcome reactive devaluation, consider the following:

Maintain awareness of reactive devaluation and watch for it when making decisions.

Separate yourself from the situation and view it as an impartial bystander to evaluate the information without bias.

Consider the same information but coming from another source.  Would you perceive it differently?

Check with others about their view of the situation and if the information is worthy of consideration.

If so, review the information with other founders to verify it is legitimate.

It’s helpful to separate the information from its source in order to remove any bias either for or against it.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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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.