2009, Vol. 19, Issue 1, an item 2

GRZECH A., Preliminary selection in the decision-making process of venture capital funds

The aim of preliminary selection is to choose only a few firms, whose profile is in accordance with the investment strategy of the fund out of the companies interested in raising capital. This is carried out on the basis of criteria for selection. A detailed and penetrating analysis of the projects is not necessary at this stage of the decision-making process, so selection can be implemented automatically by stating whether a company meets the criteria or not. Two methods are considered row (Fig.1) and parallel (Fig.2), of which the parallel method is more universal and allows greater flexibility. Based on this method, it is possible to create a model of the process (Fig.3.) and then the implementation tool, thanks to which carrying out the selection process will become simple and fast. The discussed process consists of two stages - the first stage, which can be called preparatory, includes determination of the criteria of selection, establishing the weight of each criterion and the minimum score required. The second stage, the heart of the process, consists of testing whether a company meets the criteria. The decision on whether a company will be accepted or rejected is taken automatically based on the parameters established by the decision-maker.

Keywords: venture capital, decision-making process, selection process