Business sector portfolio selection for an Iranian venture capital fund

Document Type : Original Article

Authors

Iran University of Science & Technology

Abstract

The business sector portfolio selection is essential for venture capital funds. Because one venture capital fund for achieve to the success must be expert in sector of his portfolio companies and haves network of investors, consultants, mentors and market channels. It is obvious one venture capital cannot achieve this competency in all business sectors. Therefor it must select a few sectors and focus only on them. Target business sector selection for this Institution will be based on attractiveness and capability that capability for any venture capital funds has been exclusive and attractiveness for venture capital funds that located in one country will be the same.
Therefore in this research for an internal venture capital by using a model based on business sector attractiveness and fund of study capability, business sectors were ranked and the share capital of them were determined. Due to the influence of various factors in determining the business sectors priority and dependence of them, The Dematel-ANP multi-criteria decision technique were used. Also the input  information of this method through field survey and interview by venture capital and business sectors experts gathered. In this way four questionnaire desined that were couple compares and likert.
Finally by decision making super matrix formation and information analyze base of venture capital fund requisition according to four business sector selection, agriculture, marketing, education and entertainment, each with about 25% share of capital as target sectors were defined. Tourism, construction, IT and packing as well as sectors of alternative proposed for fund.

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References

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Innovation Management Journal
Volume 5, Issue 3 - Serial Number 17
December 2016
Pages 117-142

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  • Receive Date: 26 March 2016
  • Accept Date: 03 December 2016

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