CRITICAL FACTORS AFFECTING VENTURE CAPITAL INVESTMENT DECISION ON INNOVATIVE STARTUPS: A CASE OF SOUTH KOREA

This study aims to analyze the factors affecting venture capital investment decisions on startups, draw critical factors, and present a decision-making model that can be used as critical standards for venture capital investment decisions on innovative startups. To this end, this study used the analytic hierarchy process (AHP). To design a decisionmaking concept model, this study examined various factors considered in venture capital decision on an investment based on previous significant studies and employed 19 evaluation items centered on four areas —entrepreneur, product and service, market, and finance. It carried out a questionnaire survey targeting 15 venture capitalists and 15 startup support experts, including startup support institution personnel and startup consultants. As a result of the survey analysis, the entrepreneur was the most critical factor compared to the product and service, market, and finance. Reliability and business suitability were also more important factors than an entrepreneur's disposition or technical expertise. Consequently, it was confirmed that entrepreneurs' reliability and business suitability become critical decision factors in venture capital investment decisions on innovative startups.