Published Feb 28, 2018
Maria Milkova Olga Andreichikova Alexander Andreichikov


The idea of synthesizing analytical and heuristic approaches is proposed in order to join different approaches to the Venture Capitalists (VCs) decision making. The research applies Analytic Network Process (ANP) methodology to the comparative evaluation of four e-commerce startups. The proposed ANP model represents the decision problem as a structure of Benefits-Opportunities and Risks networks with dependences and feedbacks between decision criteria and alternatives. Based on VCs judgments that are checked for consistency, the ANP approach helps choose the best startup for funding or to estimate the target startup versus other startups. The ratings that are obtained may be used as weights for determining a startups valuation.  In the model, heuristics is used without reducing the complexity of the task and thus helps avoid the systematic error. Moreover, the idea of applying ANP to the VCs decision making serves to make the decision process transparent and understandable. To implement the ANP model, Multichoice software has been developed.

How to Cite

Milkova, M., Andreichikova, O., & Andreichikov, A. (2018). VENTURE CAPITALISTS DECISION MAKING: APPLYING ANALYTIC NETWORK PROCESS TO THE STARTUPS EVALUATION. International Journal of the Analytic Hierarchy Process, 10(1).


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venture capital, decision making, heuristics, analytic network process, startups evaluation

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