The backfire effect is a bias defined by Wikipedia as the reaction to disconfirming evidence by strengthening one’s previous beliefs.
Investors can reject a startup’s pitch if they doubt the premise even if confronted with the facts.
Providing more facts will only make the investor dig in further.
To overcome the backfire effect, avoid the topic if at all possible and steer away from it.
Don’t confront it head-on as it will distract from the pitch.
Coming on strong will only make the investor dig into their original beliefs.
Keep emotions out of it.
Step back and take a look at it from the big-picture perspective.
Identify the core reason the investor does not like your deal and focus on that.
Acknowledge how the investor’s belief was true at one time but that times have changed and things are moving in a different direction.
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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.