A Fuzzy Goal Programming Model for Venture Capital Investment Decision Making

The Venture Capital decision making process involves several conflicting and imprecise criteria. The decision to invest is a difficult one with serious adverse selection risk and surrounded with uncertainty. The aim of this paper is to propose a cardinality constrained Fuzzy Goal Programming (FGP) model to deal with such a complex scenario. A FGP model does not require any assumptions on the probability distribution, better fitting with the characteristics of the Venture Capital market. The developed model is illustrated through a numerical example which uses data taken from an Italian venture capital fund.