Take a look at this video:
Efeito Manada:
That explains why a group of cross-fitters running by a cafe in Brazil caused a stampede of people to follow, thinking they needed to escape something.
Also known as "herd mentality" in English, it drives humans to copy the behavior of others around them with little reason. A stampede on a sidewalk in Brazil is a more extreme version of something you often see in hot restaurants and stores. People will stand in line simply because of… people standing in line!
This phenomenon can be used to encourage collective action in a variety of fields and is the basis for many powerful fundraising strategies.
Read through these examples and see how herd mentality plays a part…
Angel Army:
The Angel Army strategy is a strategy I’ve written about that leverages angels as the starting point for a fundraiser (https://www.adamantventures.com/blog-post/building-an-angel-army). By kicking off a fundraiser with an "army" of credible angels, you borrow credibility and assemble a group that larger investors will feel comfortable following. In other words, you create a herd of angels for the masses to follow. This is one of the most effective ways to build momentum for your fundraising.
Social Media as PR:
Social media is not just cringey dances and shit posting. It's a platform to spread ideas and initiate a digital following.
With social, everyone can be their PR firm and create a digital herd promoting and pushing their company: https://www.adamantventures.com/blog-post/how-social-media-drives-investor-interest
• Need inspiration on what to post? Download our resource pack: 14 Social Media Posts That Get You Noticed By Investors
Calendar Density:
The grand-daddy of fundraising strategies. Calendar Density has everything to do with creating “efeito manada” within investor groups.
With a well-established group of investors all looking at your deal during strict availability windows, you’ll have created calendar density. In this situation, VCs are forced into a herd. As they look to their left and right, they’ll feel other investors running towards your deal and the undeniable urge to follow. 😳
Wrapping up, leading the pack:
Read through these examples of herd mentality in fundraising. Herd mentality is a powerful tool to create collective investor action and can be used to accelerate fundraising success. Understanding the pull of the herd for investors will help you make more situations that drive capital to your front door and put you ahead of the pack to close a round.
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