Study On Founders' Investment Decision In Venture Investment Based On An Fuzzy Analytic Hierarchy Process (FAHP) Approach

Venture capital plays an important role in today's social and economic development,not only help small and medium-sized enterprises pull through the early stage of shortage of funds and the market transformation of scientific experimental technology,but also use the power of capital to promote the improvement of the socialist market economy with Chinese characteristics continually.However,its investment decision-making has not formed a set of scientific and efficient mechanisms and methods.Then this article just used it as the starting point.Since 80's in last century,venture capital has begun to emerge in China,and it has been more than 30 years.During this period,venture capital in China was developing by leaps and bounds.However,venture capital is a work with high risk,a lot of investment stages,wide investment area,and complicated investment decision-making.Therefore,according to the development stage and field of the object of investment,the current domestic venture capital funds are divided into various categories.By comparing and analyzing,founders are essential in the entire investment decision-making,especially in the projects which are in seed and angel investments.However,from ancient times until today,it has been always very difficult to evaluate human beings.I carefully researched the investment methods of Chongqing Yiyi angel Investment Co.,Ltd.,and used investment standards from dozens of well-known domestic and foreign venture capital organizations as a verification.It has been found that the investment standards of Chongqing Yiyi Angels Investment Co.,Ltd.are basically perfected and can be used as the basic evaluation standard of venture capital.This set of investment standards of Chongqing Yiyi angel Investment Co.,Ltd.is established from the commercial nature,so superficially five standards in the six are to assess "things",and only one standard is to assess "people".But in my opinion these "things" are based on "people".So I summarized the investment standards of Chongqing Yiyi Angel Investment Co.,Ltd.as "people's internal factors" and "people's external factors" these two standards.However,in fact,there is nearly no early project which can almost completely meet all the criteria,and all of the projects can only meet part of the standards.But through the practice verification,projects which can't fully meet all the standard could also succeed.So the focus of the study is "which level that projects achieve the standards can be worth investing?In order to solve this problem,integrating venture capital standards is the first thing to do.It has been found that the main mathematical tools or methods used in the field of information fusion are probability theory,reasoning network,fuzzy theory and neural network.After comparing and analyzing,this paper found the use of analytic hierarchy process on this issue is more appropriate.In the field of venture capital,the assessment of human beings is always emotional and vague.Therefore,when integrating the investment standards,using the method of the fuzzy numbers to deal with the data,made the data processing closer to the real situation and thus obtained more accurate data.Because this method is mainly applied to project evaluation and investment decision-making in the field of angel investment.in the industry a project angel project how to enter the A round,that the project angel investment is basically a success.Therefore,I assessed 100 founders who has got A round of investment by using some formal channels in the VC circle.After analysis,the assessments of 100 founders who have entered the A round of the project are in a reasonable range.So we can use the same method of angel project evaluation in the future,if the evaluation results are also in this interval,then it indicates that the project can be invested.In this paper,a set of practical investment system was achieved through studying,which can make the investment decision-making assessments aiming at the founders of the venture project in angel investment.This system is used as a basic decision support in the whole venture capital funds,which is mainly to help middle-low-level funds investment manager quickly and accurately determine the projects,and it also provides decision-making basis for the "investment decision-making meeting".