Title: Using fuzzy set theory in assessing the success potential of venture capital investment: theory and pilot field study

Authors: Toivo M. Koski

Addresses: Helsinki School of Economics and Business Administration, Lapuankatu 6, 00100 Helsinki, Finland

Abstract: This study focuses on the creation of a model that will simulate the venture capitalist|s perception regarding the success potential of a venture and the venture capital investment. It presents the basis for the utilisation of fuzzy set theory and fuzzy logic in order to create the model. Also presented in this study are the empirical results needed to create the membership functions needed to build the model in practice. As the result of a pilot field study, preliminary conclusions can be drawn about how Finnish venture capitalists weight different estimated success factors in comparison to previous studies, usually made in the USA and Europe.

Keywords: venture capital; venture capital decision making; venture capital investment; success potential; fuzzy set theory; entrepreneurship; Finland.

DOI: 10.1504/IJEIM.2003.003940

International Journal of Entrepreneurship and Innovation Management, 2003 Vol.3 No.5/6, pp.509 - 524

Published online: 10 May 2004 *

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