Selection of business funding proposals using analytic network process: a case study at a venture capital company

Financing companies are regularly faced with decision-making in the business process. They are often challenged to carefully select the right proposals as it is one among decision-makings that contribute to the company financial performance. Unfortunately, many venture capital companies in Indonesia perform the selection process based on some quick analysis methods while the criteria to be considered are multiple. Some of the criteria are possibly dependent to each other. This research attempted to apply Analytic Network Process (ANP) to support the decision-making process in the observed company. As ANP does not work optimally in the case where the number of alternatives is large, we performed an initial selection process by employing two criteria as filters to reduce the available alternatives. The process continued by applying ANP to the ten selected criteria from which ranking of each alternative was produced. One-by-one elimination rank was also used as an approach in the analysis. The result has shown that ANP was capable of providing a good and structured decision preview in the decision-making process. Analysis also found that when several alternatives were removed from the calculation, the resulted ranks also changed. (C) 2015 The Authors. Published by Elsevier B.V.