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The Halo Effect in VC Investing

Don't let a single positive impression unfairly influence an overall assessment of a startup

Art, Tech & Capital's avatar
Art, Tech & Capital
May 09, 2024
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VCs are constantly bombarded with pitches from passionate entrepreneurs. While a great team and a captivating vision are important, they shouldn't overshadow a critical evaluation of the business itself. This is where a sneaky cognitive bias called the halo effect can wreak havoc on investment decisions.

Sarah McVittie, Author at Elite Business Magazine

What is the Halo Effect?

The halo effect describes …

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