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Gut Check

From what body part are venture capitalists most likely to take direction? Their hearts? Their brains? Their, um, nethers? Turns out, a clear majority say their "guts" decide where their money goes, according to a study of 185 VCs conducted by Pepperdine University. "Gut feelings" were cited by 67% of those surveyed, compared to just 43% who cited cash-flow analysis.

What does John Paglia, Pepperdine finance professor and author of the report, think about the finding? It "just makes us cringe in corporate finance," he said.

Read the whole story at Mercury News »

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