Research On Risk Investment Project Selection Method Based On Hybrid Multi-attribute Group Decision Making

With the rapid development of social economy, the advancement of technology brought great change to people’s lives. The development of high-tech industry has become an inevitable way to win the competitive advantage of nations in new economic era. Venture capital is developing under such background, just as bamboo shoots after a spring rain. Venture capital is a kind of profit investment tool, more and more people pay attention to it. Venture capital becomes the backbone of high-tech enterprise, promoting the development of high-tech industry. One of the biggest features in venture investment is that the risk is very high. And the future investment income is uncertain. The main risk investment, whether small and medium-sized investors or professional investment team, need to screen the risky investment project according to the decision and method that are reasonable and feasible, so as to obtain the best investment project. It is essential to establish a set of scientific and reasonable project evaluation and investment decision method by using some certain theories and scientific methods.Current data analysis and study about investment risk mostly has two kinds of defects:one is the value of the property into a unified evaluation index values to measure the risk of the investment merits of the decision. The other is the risk of the investment decision-making process is done in a single decision-maker’s ability. However, in the real economic problems in assessing risk investment issues often involve in many evaluation indexes, which usually can not be well expressed by using property value of the unified dimension. Own to the knowledge and ability of single decision-maker is limited. When dealing with complex decision problems, single decision-maker is inadequate. Thus, the wisdom of crowds is needed to solve these problems creatively.This paper analyzes the defects of the above two aspects, a hybrid multi-attribute group decision making based on the extended LINMAP method, combined with the actual risk of the investment project selection problems are analyzed demonstration, mainly summarized as follows:1.It describes the background and meaning of risk investment in detail and explains the operation of venture capital flow. The flow can be divided into five processes:screening of investment project, raising capital, negotiating between investors and investees, the investment and withdrawal of capital. 2.It focuses on the decision made by the investees, which is the priority in the investment process. And the establishment of decision indexes plays a crucial role in the decision-making process of project. This paper, based on previous research on decision index, gives a decision index of risk investment projects.3.For the two major problems existing in the current risky investment and study, a hybrid multi-attribute group decision making based on the extended LINMAP, the method using real numbers, interval numbers, fuzzy numbers, triangular intuitionistic fuzzy numbers, intuitionistic fuzzy sets and linguistic variables to describe the properties of the evaluation indicators value, a planning model is established deriving from the optimal solution for each attribute value, attribute values from each program integrated with the best sort of attribute values derived from programs and the optimal solution. The final comprehensive information on all elected decision-makers is the best solution. This method not only avoids the errors of the past simply generated attribute values into a single value, but analyzes the problem in the group of decision making environment, which makes the evaluation results are more accurate and reliable.4.Combining with the classical TOPSIS method and analyzing, the extended LINMAP method attributing to weighty information is calculated by a mathematical model. Comparing with the weighty information given by TOPSIS subjectively, the method avoids the error made by the policymakers and strengthens the accuracy and reliability of the results. This conclusion gives the policymakers a new way of thinking in the evaluation of future risk investment, makes the risky investment decision is more accurate and reliable, and improves the chances of venture capitalists gain greatly.