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A cardinality constrained stochastic goal programming model with satisfaction functions for venture capital investment decision making

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  • Belaïd Aouni
  • Cinzia Colapinto
  • Davide Torre

Abstract

Venture capital has proven to be an essential resource for economic growth, especially in some technological clusters. The focus is on the way the venture capitalist makes the investment decision and the portfolio selection. The aim of this paper is to formulate the venture capital investment problem through the Goal Programming model where the Financial Decision-Maker’s preferences will be explicitly incorporated through the concept of satisfaction functions. The proposed model will be illustrated by using data from an Italian venture capital fund. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Belaïd Aouni & Cinzia Colapinto & Davide Torre, 2013. "A cardinality constrained stochastic goal programming model with satisfaction functions for venture capital investment decision making," Annals of Operations Research, Springer, vol. 205(1), pages 77-88, May.
    • Handle: RePEc:spr:annopr:v:205:y:2013:i:1:p:77-88:10.1007/s10479-012-1168-4
    DOI: 10.1007/s10479-012-1168-4
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    2. Thomas W. Archibald & Edgar Possani, 2021. "Investment and operational decisions for start-up companies: a game theory and Markov decision process approach," Annals of Operations Research, Springer, vol. 299(1), pages 317-330, April.
    3. Thanh Huynh, 2016. "Early-stage fundraising of university spin-offs: a study through demand-site perspectives," Venture Capital, Taylor & Francis Journals, vol. 18(4), pages 345-367, October.
    4. Aouni, Belaid & Colapinto, Cinzia & La Torre, Davide, 2014. "Financial portfolio management through the goal programming model: Current state-of-the-art," European Journal of Operational Research, Elsevier, vol. 234(2), pages 536-545.
    5. William Seitz & D La Torre, 2014. "Modelling Investment Optimization on Smallholder Farms through Multi-criteria Decision Approaches: An Example from Ethiopia," CSAE Working Paper Series 2014-06, Centre for the Study of African Economies, University of Oxford.
    6. Jayaraman, Raja & Colapinto, Cinzia & Torre, Davide La & Malik, Tufail, 2015. "Multi-criteria model for sustainable development using goal programming applied to the United Arab Emirates," Energy Policy, Elsevier, vol. 87(C), pages 447-454.
    7. Raja Jayaraman & Danilo Liuzzi & Cinzia Colapinto & Tufail Malik, 2017. "A fuzzy goal programming model to analyze energy, environmental and sustainability goals of the United Arab Emirates," Annals of Operations Research, Springer, vol. 251(1), pages 255-270, April.
    8. Cinzia Colapinto & Raja Jayaraman & Simone Marsiglio, 2017. "Multi-criteria decision analysis with goal programming in engineering, management and social sciences: a state-of-the art review," Annals of Operations Research, Springer, vol. 251(1), pages 7-40, April.
    9. Chao Fu & Dong-Ling Xu, 2016. "Determining attribute weights to improve solution reliability and its application to selecting leading industries," Annals of Operations Research, Springer, vol. 245(1), pages 401-426, October.
    10. Carayannis, Elias G. & Grigoroudis, Evangelos & Wurth, Bernd, 2022. "OR for entrepreneurial ecosystems: A problem-oriented review and agenda," European Journal of Operational Research, Elsevier, vol. 300(3), pages 791-808.
    11. Amelia Bilbao-Terol & Mar Arenas-Parra & Verónica Cañal-Fernández & Celia Bilbao-Terol, 2016. "Multi-criteria decision making for choosing socially responsible investment within a behavioral portfolio theory framework: a new way of investing into a crisis environment," Annals of Operations Research, Springer, vol. 247(2), pages 549-580, December.
    12. Cinzia Colapinto & Davide Torre & Belaid Aouni, 2019. "Goal programming for financial portfolio management: a state-of-the-art review," Operational Research, Springer, vol. 19(3), pages 717-736, September.
    13. Cinzia Colapinto & Danilo Liuzzi & Simone Marsiglio, 2017. "Sustainability and intertemporal equity: a multicriteria approach," Annals of Operations Research, Springer, vol. 251(1), pages 271-284, April.

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