Ranking Islamic Contracts of Venture Capital Funds Using TOPSIS Method

The purpose of this study is to identify the criteria of venture capital (VC) financing and to determine the importance of each criterion in VC financing and finally to use TOPSIS method to rank Islamic contracts in VC financial systems. To rank the contracts, 8 criteria were identified through literature review and research works in the related fields. Then, for calculating the ranking of each criterion and performing sensitivity analysis toward making proper decisions, both quantitative and qualitative techniques is used. Shannon Entropy, as a quantitative technique, was used to calculate the importance of criteria using a questionnaire completed by bank experts in Islamic contracts of VC. However, using a qualitative method, 3 different states were considered for the importance level of criteria. Finally, the ranking of Islamic contracts in the VC financial system was calculated using TOPSIS method.