Abstract
We propose a novel method – F2C – that can process the only information available in the early stages of a young high-technology venture: linguistic expert knowledge. This knowledge is the basis for the determination of an appropriate discount rate for the valuation of high-technology ventures in early stages of venture capital investments. A specific tool named Fuzzy Cognitive Map (FCM) is used therein to capture and depict the expert knowledge. Consequently, the FCM is transformed into a system of Fuzzy Inference Systems. These systems allow eventually obtaining a crisp value for the crucial parameter, the discount rate r . First practical applications were carried out valuing a biotechnology venture. The obtained results are promising, though the need for further research efforts became obvious.