Iranian Journal of Finance

Designing a Causal Model for Multi-Criteria Decision-Making in Financial Risk Analysis and Financing of IT-Based Startup Companies (BWM-DEMATEL) approach

Document Type : Original Article

Authors

Mohammad Mostafa Bod 1
Reza Raei 2

1 Master's in Entrepreneurship, New Business Orientation, University of Tehran, Tehran, Iran.

2 Professor, Department of Markets and Financial Institutions, Faculty of Accounting and Financial Sciences, College of Management, University of Tehran, Tehran, Iran.

10.61186/ijf.2025.482809.1492
Abstract
This research uses a fuzzy Delphi approach to identify the dimensions and components of investor risk and financing for IT-based startup companies. The statistical population for this study consisted of 30 experts and university professors familiar with the research concepts surveyed to select the dimensions and components identified from the literature and prior research. The results from the fuzzy Delphi method showed that the financing and investor risk dimensions were selected in 9 dimensions and 29 components. The weighting results for the research dimensions and components using the Best-Worst Method (BWM) prioritized each. The weighting results indicate that the industry status ranked first, followed by scientific factors and other components, ranked third to ninth in the LINGO software. Additionally, the intensity of relationships among the research dimensions was assessed using the Decision-Making Trial and Evaluation Laboratory (DEMATEL) technique. The analysis of the intensity of relationships among the dimensions shows that the government factors dimension had the highest numerical value based on the row sum, making it the most influential dimension among those examined in financing startup companies using the DEMATEL technique. Conversely, based on the D-R analysis, the geographic factors dimension received the lowest value and was recognized as the most affected dimension. Using the fuzzy Delphi method, this research has identified specific and novel dimensions and components, such as governmental, geographical, and scientific factors, which have been less addressed in the existing literature.

Keywords

Risk Management
Financial Risk
Financing
Startup Companies
Fuzzy Delphi Technique
Best-Worst Method
Decision-Making Trial and Evaluation Laboratory (DEMATEL)
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Iranian Journal of Finance
Volume 9, Issue 1
Winter 2025
Pages 162-198

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