Year of founding as a determinant of start-up success

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.