Study Of Ahp-ann-based Venture Capital Project Evaluation Method

Nowadays, with the ever increasingly globalization of the world, a nation's comprehensive competitive ability is mainly determined by its high-tech and its level of industrialization of high-tech. It is a shared acknowledgement to promote high-tech industrialization with fully developed VC in order to up-grade the economic structure.The appraisal of the projects is one of the key procedures in the VC investment process. The effective approach to acquire investment returns and to lower risks is what VC institutions have been exploring.This paper attempts to bring out a set of evaluation methodology of VC projects based on the combination of AHP (short of Analytic Hierarchy Process) and FRB (short of Radial Basis Function Network) in view of the unique essence of VC and the limitations of the existing evaluation methods.Firstly, we collect a group of evaluation indicators based on existed research results and the real conditions of VC institutions. Then we survey some VC companies and the related institutions with questionnaire, from which we select 14 key factors and establish our elementary evaluation index system composed of four aspects: management, technology and products, market and environment and finance.Secondly, we set up our model with the Analytic Hierarchy Processand contrast the index importance of projects in different industries, eventually we arrive at the sequence of the total heavy of evaluated items of three sub-industries. Then, by using the basic principle of neural network and pre-processing of network input as the total heavy sequence of industries, we build the 14-1 evaluated model of radial basis function network. Additionally, we carry out a practical analysis of three evaluated projects with our model, the result of which is quite consistent with that of the experts. This demonstrates the effectiveness of the evaluation methodology proposed in this paper.Finally, the superiority of this methodology mentioned in this paper is fully explained in comparison with the traditional evaluation approaches.