Framing Effect Bias

Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

The framing effect bias is defined by Wikipedia as drawing different conclusions from the same information, depending on how that information is presented.

How you frame the startup in a pitch can determine how an investor regards it.

One can use framing to position a startup so it’s more relevant to the investor.

If the investors are tech investors then position the startup as a tech deal.

If the investors look for recurring revenue then position the startup based on its revenue model.

If the investors are impact investors, then position the startup to show the impact it makes.

By positioning the startup for the investor you can increase the chance that an investor will align with it.

Also by framing the pitch to show the accomplishments of the startup rather than the work left to be done, one can position the startup as successful and on track rather than falling behind.

Use framing to put your startup in the best position to connect with the investor. 

 

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

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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.