Capital raising topics

Investor psychology and trust

Meeting in person raised closing rates 16 times in studies of normal sales transactions. Richard C. Wilson has studied influence and persuasion since 2004, and he says talking in person is 16 times more effective than LinkedIn, Zoom or email. Chip said that after raising $7 billion over 40 years, he still approaches 300 plus investors to find 10 or 15 who invest. This hub collects videos, a guide and an answer on how investors decide whether to trust a pitch.

Attention is short. One guest says attention spans are about 8 seconds and dwindling, and investors may be reviewing 20 to 30 other projects across different regions and countries. Richard receives about 4 to 12 voicemails per day and listens to the first sentence of every one. A related answer explains why investors say maybe instead of a clear no. A maybe needs no decision and no work. It often means the investor does not yet trust the pitch enough to commit.

9 videos, 1 question and 1 guide on this topic.

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Common questions

How much more effective is meeting investors in person?

Richard C. Richard says talking in person is 16 times more effective than digital contact such as LinkedIn, Zoom or email. Studies of normal sales transactions also showed in-person meetings raised closing rates 16 times.

Why do investors say maybe instead of a clear no?

A maybe is the easiest answer for a busy investor, because a no needs a decision and a yes needs work. It often means the investor does not yet trust you enough to commit, or does not have time to check.

How many investors does an experienced raiser approach to get a few to invest?

Chip said that after raising $7 billion over 40 years, he still approaches 300 plus investors to find 10 or 15 who invest.

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