How To Generate the Herd Effect Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In raising funding, the startup founder’s job is to motivate the investor to engage in the deal. Investors are often motivated by what they see other investors do. This is called the herd effect. This is when people copy what others are doing. Here are some key tips on how to create the herd effect with your investors: For investors who have influence or a network, offer them advisory shares to help recruit more investors. The advisory shares incentivize the investor to promote the deal to other investors. Use social media to showcase your investor updates and encourage existing investors to repost and like the mention. Pitch investors in small groups rather than one-on-one. Five is an ideal number. Investors can see the interest from other investors, which generates FOMO. This also helps build confidence in the investor that they are not alone and will have support from others if they invest. Finally, calculate the interest and committed funds and share with the investors in regular updates. This shows investor interest in the deal. 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. _________________________________________________________ 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.

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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.