Identifying and Prioritizing Factors Affecting Innovation of Investee Companies From the Perspective of Venture Capitalists: A Case Study

Nowadays innovation is one of the vital success factors of new SMEs. Venture capital can promote the innovation of investee firms. This paper aims to identify and prioritize factors affecting the innovation of investee firms. Initially, by reviewing the literature, ۱۸ factors were extracted. Then by statistical analysis, six factors with less importance were removed. The ۱۲ factors with more importance advanced to the final step to be prioritized by Fuzzy DEMATEL method. Results demonstrated that the most important factors are providing valuable information from the industry, cooperation and contact with the industry activists, and informing about the possible threats and opportunities. The findings of this paper provide key insight into alternative investment, which is a novel area in Iran’s emerging financial markets. In other words, it can support both sides of a venture capital investment process to know which factors are of more importance to boost the possibility of success.

Keywords:

Venture capital , alternative investment , Innovation , Fuzzy DEMATEL