Method for Selecting Pareto-Optimal VC Project Portfolios
Yuan‐Wei Du · Application of Statistics and Management · 2009
To solve the problems of current VC(venture capital) project portfolio selection methods, resulting from the capital indivisibility and the scrutability of VC projects' ROI(returns of investment), the ratio of project portfolio preference(TPR) and its variance(VTPR) were defined based on the project evaluation criteria and the technical thoughts in mean-variance model.After that,the TPR and the VTPR were regarded as outputs and inputs of portfolios respectively,and a model named VCP-DEA/AR was established by the principle of data envelopment analysis.The presented model is able to derive pareto-optimal project portfolios.Applied to an illustrative example,the presented model is proved to be scientific,efficient,and well applicable finally.