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How To Use The Loss Aversion Principle In Your Capital Raise
- Published December 20, 2022 3:19AM UTC
- Publisher Leila Oliveira
- Categories Capital Raising Tips
The Loss aversion principle
and how to use it in your capital raising strategy 👇
Why does this matter?
Well, it turns out that people are often willing to take far greater risks to avoid losses than they are to make gains.
So, you’ll be more successful if you frame it as a loss rather than as a gain.
Instead of saying:
“If you invest in our app, you’ll have xyz return”
Say:
“80% of the round is already committed and we don’t want you to miss out”
“I’m happy to chat again in the next round, but we are projecting the valuation to increase by xxx” .
PS. Obviously, just say it if it’s TRUE. 😅
PS 2. Use it as a follow-up strategy, not in the first conversation with the potential investor.
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