About This Episode

In this thought-provoking discussion, Patric Hellermann and Shub Bhattacharya examine "The Illusion of Knowledge" - how professionals, particularly in venture capital and construction technology, often make critical decisions based on filtered information rather than primary data. They explore the tendency to mistake assumptions for facts and discuss how this impacts decision-making in AEC startups and technology investments.

In This Episode

The Dunning-Kruger effect in entrepreneurship and venture capital and how it leads to poor investment decisions in construction technology startups

Why relying on curated briefings and secondhand information creates the same problems for VCs that plague government officials and politicians

The critical importance of acquiring primary details directly from customers, users, and the field before making investment or strategic decisions in AEC companies

How the amplification of misinformation through social media has made it harder to distinguish between genuine expertise and false confidence in construction technology

The difference between helpful biases (taste and pattern recognition) and harmful biases that lead to manipulation and poor decision-making

Why founder-led companies typically make better decisions than those run by employed CEOs, especially in the AEC sector

Timestamps

(00:00 ) - Introduction and discussion of feeling intelligent vs. actually knowing

(02:00 ) - The illusion of knowledge concept and how it manifests in different crises and trends

(06:00 ) - The Dunning-Kruger effect and its amplification through social media

(11:00 ) - How politicians and VCs both suffer from filtered information problems

(15:00 ) - The importance of getting primary details to make prime decisions

(20:00 ) - Taking accountability and ownership over investment decisions

(27:00 ) - Spotting false expertise and the problem of loud voices without knowledge

(30:00 ) - When biases are helpful vs. harmful in decision-making

(37:00 ) - The impact of social media on information quality and decision-making

(41:00 ) - Conclusion and final thoughts on employed vs. owner CEOs

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Patric Hellermann: ⁠⁠https://www.linkedin.com/in/aecvc/⁠⁠

Shub Bhattacharya: ⁠⁠https://www.linkedin.com/in/shubhankar-bhattacharya-a1063a3/⁠⁠

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