A study reported in the New York Times today reveals that venture capitalists rely much more on gut instinct than than the information in business plans when making funding decisions. Now a lot of numbers in a business plan are speculation at best so they don’t constitute data, per se. Actual data such as sales is important if only for its very existance. But one would think that there must be a more analytic approach to doling out so much cash.
Have you see VC’s take a more analytical approach? What would you look for in order to analyze whre to place $10 million or $100 million?
