Volume 17, Number 1, June 2022
| Determining the optimal crowdfunding approach for external financing for lending company start-ups of Taiwan in the FinTech industry |
Abstract
The aim of this study is to construct processes to obtain the optimal solution of an external financing approach for lending company start-ups of Taiwan in the financial technology (FinTech) industry by integrating the algorithms of analytic hierarchy process (AHP) and the technique for ordering preference by similarity to the ideal solution (TOPSIS). Firstly, this study constructs the factors and sub-factors by modifying the Delphi method based on the literature review. Secondly, the AHP algorithm is applied to obtain weights of the factors and sub-factors. Thirdly, the TOPSIS algorithm is used to evaluate the optimal solution of the external financing approach for lending company start-ups in terms of their overall weights on multiple evaluation factors. The results indicate that angel fund is the optimal solution for lending start-ups of Taiwan in FinTech industry and the most important factor is cost of capital for evaluating the optimal solution on an external financing approach. The proposed framework can provide academic and commercial support for administrators and entrepreneurs in lending company start-ups of Taiwan as a valuable objective guide to determine the optimal solution on an external financing approach.
Keywords: FinTech Industry; Lending Company Start-ups; AHP; TOPSIS; External Financing Approach
JEL Classification: G32, O16