Validation of Subjectively Determined Risk Premia in High-Technology Ventures Investments using a Novel Framework for Converting Fuzzy Cognitive Maps into Rule-based Fuzzy Inference Systems

Lars Krüger, Ralf Salomon, and Peter Heydebreck


Fuzzy Cognitive Map, Fuzzy Inference Systems, Fuzzy Rules, High-Technology Ventures, Company Valuation, Risk Premium


Venture valuation is an essential technique in economics. Depending on the reason for a valuation, there are several methods applicable. It becomes even more complex when it comes to the valuation of companies that possess mainly intangible assets and whose success lies in the future. In this article a further step towards a Fuzzy Method is presented and discussed that allows the determination of a relevant parameter for a widely used valuation method. We focus on the application of a novel methodological framework to convert Fuzzy Cognitive Maps into Fuzzy rule-based Inference Systems. In addition, we enhance the model’s efficacy by using empirically proven economic relations.

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