Abstract:
In today’s era, technology and innovative
ideas had driven the global economy. A selection of
venture investment process is regarded as the most
complex task due to its direct or indirect impact on
venture’s success rate. Venture capitalists (VCs) use a
multi-criteria approach to identify new and incipient
entrepreneurs while investing a new venture. At the
times of investment, VCs assess several investment
proposals based on some key factors such as
entrepreneur’s personality, product and market characteristics,
financial consideration, management skills
and so on. Earlier researchers were concentrated on
these factors solely; thus, a holistic approach is
required for better understanding of venture capital
investment process. To do so, interpretive structural
modeling was used to explore and develop an interrelationship
among relevant decision-making factors.
Structural self-interaction matrix was used to measure
the level partitions at various iteration levels. A
digraph facilitates the accomplishment of logical
framework based on identified dependent (those
affected by drivers) and driver (those affect others)
factors. This paper may help VCs and entrepreneurs to better analyze the investment process and provide
them a deep understanding of various issues associated
with investment decision-making process.
