Continued Influence Effect

Some investors will hold onto their preconceived notions even when presented with corrected information.

For example, a startup positions their company as providing a service but they don’t mention they have recurring revenue.

Recurring revenue shows scalability while service businesses typically do not.

Even after the investor learns about the recurring revenue, they will continue to view it as a service business lacking scalability.

The startup may correct its misinformation which is often an omission. But the investor may not consider the startup as valuable as if they had started with the correct information.

To correct the misinformation, having the CEO make the clarification as an authority can help overcome the bias.

Show the reason why the misinformation occurred so it’s clear it came from faulty or outdated information.

Have a third party confirm the corrected information as it brings a neutral perspective which can often sway investors.

It’s best to avoid misinformation to begin with as it can take a great deal of time and work to overcome 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.

---

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Copyright (c) 2024, Hall Martin and investorconnect.org. All rights reserved.

Disclaimer:
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.