# kaal:claim:3962614-008

**Claim.** A drawback of the traditional VC evaluation process is that perceptual, emotional, and cognitive processes affect the investment decision alongside financial considerations, because the evaluation criteria are applied through subjective human decision making.

**Type.** failure  **Support.** argued

**Holds when.**

- human applied VC screening criteria

**Source quote.**

> A potential drawback of this process is that perceptual, emotional, and cognitive processes impact the decision in addition to financial decisions because the evaluation criteria is made through subjective human decision-making.

**From.** Wulf A. Kaal, *REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu* (2021), II.1.c) Cost of Deal Screening and Structuring, page 9

**Cite as.** Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021). SSRN: https://ssrn.com/abstract=3962614

**Verify.** sha256 of source PDF `c6e202e77fd08db801f932774026458b94e5d103abf30cb1189fe6a1c5edf391` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20REPUTATION%20AS%20CAPITAL%20%E2%80%93%20How%20Decentralized%20Autonomous%20Organizations%20Address%20Shortcomings%20in%20the%20Ventu.pdf

**Failure mode.** Cognitive bias in screening  (family: sample-and-selection-bias)

**Topics.** innovation

**Keywords.** cognitive-bias, deal-screening, decision-making, venture-capital

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.