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Year of founding as a determinant of start-up success
1. Barbora Marie Nováková Nováková, Postgraduate student, Department of Finance, University of Finance and Administration, Prague, Czech Republic.
2 Beenish Sarfaraz, Master of information technology, Postgraduate student, University of north america, Fairlakes Virginia, USA.
Research Article
International Journal of Science and Research Archive, 2024, 12(02), 2019–2026.
Article DOI: 10.30574/ijsra.2024.12.2.1461
Publication history:
Received on 29 June 2024; revised on 08 August 2024; accepted on 10 August 2024
Abstract:
This paper examines the impact of year of founding and type of funding on the growth of startups, as measured by average number of employees, and analyses the differences between different business areas. The data was obtained from a large database of startups and was thoroughly cleaned before analysis. Descriptive statistics, correlation analysis and cluster analysis by funding type and business area were used.
The results show that year of founding and funding type are significant factors influencing startup growth. Startups funded through Private Equity (PE) Growth had the highest average number of employees, while startups with Series B and Later Stage VC funding showed strong and stable growth. In addition, specific trends were identified in different business areas. Sectors such as Mobility & Transportation and Sales and Marketing show strong growth influenced by the year of founding, while sectors such as Govtech have less growth likely due to specific regulatory requirements.
The study highlights the importance of year of founding and type of funding for startup growth and provides valuable insights for founders and investors when planning expansion and funding strategies. The results also suggest the need for further research that considers geographic, macroeconomic and qualitative aspects of startup success.
Keywords:
Startups; Year Founded; Type of Funding; Employee Growth; Area Of Entrepreneurship; Private Equity; Venture Capital; Innovation; Entrepreneurship.
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0
