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Abstract

Building upon new findings from the field of behavioral finance and economics, this article provides fresh insights into how venture capitalists (VCs) and entrepreneurs perceive, experience, and deal with risk; and how they go about making decisions in their respective areas of venture creation, venture evaluation, venture growth, and investing.


By helping VCs and entrepreneurs to be cognizant of the many psychological traps that continuously get turned on at and around decision‐making times, such findings would certainly help both parties to avoid committing costly mistakes in their businesses.

Copyright © 2009 John Wiley & Sons, Ltd.