Group Decision Support Model for Tech-Based Startup Funding Using Multistage Fuzzy Logic

Abstract

The startup business model has grown rapidly in the last few years. However, giving investment or funding to a startup, especially in its early stages, is difficult because the risk is higher than a conventional company. This paper proposes a group decision support model (GDSM) that can help both government venture capital (GVC) and private venture capital (PVC) make the right funding decision. The model was built using a simple mathematics method (SMM) and multistage fuzzy logic (MFL) to examine twenty-two parameters in fuzzy and nonfuzzy values. Two experts from GVC and PVC were interviewed to weigh all the parameters. The model is implemented and tested using three real-world data. Ultimately, the model can help decision-makers in GVC and PVC to decide the most optimum funding for startups.