Syddansk Universitet
Using Fuzzy-TOPSIS Method to Rank Investors’ Decision Variables in Venture
Proposals Evaluation
Giones, Ferran; Riu, David; Rovira, Xari
Publication date:
2016
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Citation for pulished version (APA):
Giones, F., Riu, D., & Rovira, X. (2016). Using Fuzzy-TOPSIS Method to Rank Investors’ Decision Variables in
Venture Proposals Evaluation. Abstract from 83rd Meeting of Euro Working Group on MCDA, Sant Cugat,
Spain.
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Download date: 29. Jul. 2017
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MEETING OF EURO WORKING GROUP ON MCDA, MARCH 31-APRIL, 2016
Using Fuzzy-TOPSIS Method to Rank Investors’ Decision
Variables in Venture Proposals Evaluation
Ferran Giones, David Riu
La Salle URL
Xari Rovira
ESADE Business School
Keywords: Fuzzy variables, Group Decision-Making, Ranking, Entrepreneurial
Investment
ABSTRACT
Understanding the criteria used by investors to evaluate new ventures’ proposals remains
an active area of research in entrepreneurship (Nunes et al. 2014). Prior research identifies
that there are differences in the types and importance of criteria used to evaluate venture
proposals (Streletzki & Schulte 2013), and suggests that in some cases just a few element
define the criteria used to make investment decisions (Maxwell et al. 2011). Despite
scholars’ interest in understanding the evaluation criteria it is still remains unclear the
criteria and order of importance (Franke et al. 2008; Nunes et al. 2014).
We propose a method based on Fuzzy Order Preference by Similarity to an Ideal Solution
(Fuzzy TOPSIS) to help entrepreneurs to analyze the evaluation, in terms of fuzzy opinions,
of new ventures proposals. To this end a set of fuzzy linguistic terms based on triangular
fuzzy numbers are considered.
A group of investment experts has been considered to assess different factors and variables
by means of linguistic terms with different levels of precision. Results provide not only a
ranked list of variables obtained from the group of experts’ opinion buy also a measure of
the consensus reaches. A real example is presented to show the real applicability and
efficiency of the proposed methodology.
References:
Franke,N.etal.,2008.VentureCapitalists’EvaluationsofStart-UpTeams:Trade-Offs,Knock-Out
Criteria,andtheImpactofVCExperience.EntrepreneurshipTheoryandPractice,32(3),pp.459–
483.
Maxwell,A.L.,Jeffrey,S.A.&Lévesque,M.,2011.Businessangelearlystagedecisionmaking.Journal
ofBusinessVenturing,26(2),pp.212–225.
Nunes,J.C.,GomesSantanaFélix,E.&PachecoPires,C.,2014.Whichcriteriamattermostinthe
evaluationofventurecapitalinvestments?JournalofSmallBusinessandEnterprise
Development,21(3),pp.505–527.
Streletzki,J.-G.&Schulte,R.,2013.Start-upteamsandventurecapitalexitperformanceinGermany:
venturecapitalfirmsarenotselectingontherightcriteria.JournalofSmallBusiness&
Entrepreneurship,26(6),pp.601–622.
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