Journal of FinTech and Sustainable Finance

Articles

Vol. 1 (2025)

The Role of Venture Capital Investment Trusts in Startup Financing: Financial Performance Analysis Using Entropy and TOPSIS Methods

Submitted
October 24, 2025
Published
2025-11-14

Abstract

This study assesses the financial performance of eight Venture Capital Investment Trusts in Türkiye over 2021-2024 using an Entropy-TOPSIS multi-criteria decision-making framework. Twelve financial ratios representing liquidity, profitability, leverage, and efficiency dimensions are used to construct annual decision matrices. Entropy results indicate that liquidity indicators carry the highest weights, while leverage-related measures are least influential; profitability maintains moderate importance, and efficiency gains greater prominence in 2023–2024. Using these objective weights, the TOPSIS analysis shows that Hub consistently achieves the highest performance, followed by Gözde VCIT, whereas Bulls VCIT and İş VCIT display weaker and more volatile results. The dataset is derived from independently audited annual reports retrieved from the Borsa Istanbul Public Disclosure Platform. Overall, the findings demonstrate the usefulness of the Entropy–TOPSIS approach for transparent, multidimensional performance assessment in a regulated emerging market and provide a practical quantitative framework for policymakers and investors.

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