We develop a model for optimization of venture investments based on the methods of multivariate simulation (Copulas) and mixed integer linear programming. We collected historical data on venture capital investments and subsequent performance of the financed companies (targets). Using the historical data, we specified the parameters of the model and demonstrated its functionality in the experimental set up. The model can serve as a useful tool helping venture capital investors or other interested parties to choose best performing portfolios among the short-listed companies for the venture financing.

2019

2020