Application of AHP-GCP Model in Evaluation of Venture Capital Projects

Abstract

As a new type of investment tool, venture capital is different from traditional financial investment. It is more complicated, more professional, and with strong subjectivity. The various kinds of assessment methods at present are difficult to reflect the characteristics of venture capital, which to some extent reduce the rationality and objectivity of the assessment result. The paper constructs an AHP-GCP model by the valid connection of AHP (analytic hierarchy process) and GCP (gray clustering process) of the gray theory, and applies it in evaluation of venture capital projects. Through the examination of the model, the result indicates that this method can evaluate the risk of venture capital projects effectively, and can remedy the defects of the traditional venture capital evaluation to some extent