Decoding start-up success: predicting future through founder profiles - a statistical analysis

Authors

  • V. Ganesh Kumar Vallurupalli Nageswara Rao Vignana Jyothi Institute of Engineering &Technology
  • K. Jhansi Lakshmi Bai
  • B. Pragna
  • Ch. Sharanya
  • H. Karthika

DOI:

https://doi.org/10.5269/bspm.80527

Abstract

Startups stimulate economic growth, innovation, and job creation, but they need on outside funding to be viable. Based on the literature, founder traits such as social capital, human capital, and entrepreneurial experience influence investment performance nevertheless, empirical research is inconsistent and context dependent. Using Data Labs, LinkedIn, and Crunchbase data on 300 Indian start-ups, this analysis quantifies the association between founder traits and success rates. We use multi-linear and logistic regression models to evaluate how past entrepreneurial experience, education, industry exposure, and connectivity affect fundraising success. We also show how expertise and education boost fundraising possibilities, especially in urban areas and fintech, where investors favor innovation scalability above revenue creation. The findings provide practical advice for entrepreneurs, accelerators, and lawmakers who want to make start-up investments easier, and they also illustrate that variables at the founder level are predictive of success rates.

References

1. P. Davidsson, B. Honig, The role of social and human capital among nascent entrepreneurs, Journal of Business Venturing. 18, 301-331, (2003).
2. Colombo, M.G., and Grilli, L., On growth drivers of high-tech start-ups: Exploring the role of founders' human capital and venture capital, Journal of Business Venturing. 25, 610 -626 (2010).
3. Martin,B. C., McNally, J. J., and Kay,M. J., Examining the formation of human capital in entrepreneurship: A metaanalysis of entrepreneurship education outcomes, Journal of Business Venturing. 28, 211-224 (2013).
4. Jyoti, B., Singh, A. K., Characteristics and Determinants of New Startups in Gujarat, India, 2020.
5. Barz, L., Lindeque, S., Hedman, J., Critical success factors in the FinTech World: A stage model, Electronic Commerce Research and Applications. 60, 101280 (2023).
6. Subrahmanya, M. H. B., Comparing the Entrepreneurial Ecosystems for Technology Startups in Bangalore and Hyderabad, India, Technology Innovation Management Review. 2017.
7. Subrahmanya, M. H. B., Entrepreneurial Ecosystems for Tech Start-ups in India: Evolution, Structure and Role, Boca Raton, CRC Press. 2021.
8. Metrick, A., Yasuda, A., Venture capital and the finance of innovation, 2021.
9. Aulet, B., Disciplined Entrepreneurship: 24 Steps to a Successful Startup, Expanded and Updated, Hoboken, NJ: John Wiley and Sons, 2024.
10. James, G., Witten, D., Hastie, T., Tibshirani, R., An Introduction to Statistical Learning, New York, NY: Springer, 2013.
11. Weisberg, S., Applied Linear Regression, 3rd ed. Hoboken, NJ: John Wiley and Sons, 2005.
12. St. John, R. C., Applied Linear Regression Models, Journal of Quality Technology. 15, 201-202 (2018).
13. Field, A., Field, Z., Miles, J., Discovering Statistics Using R, London: SAGE Publications, 2012.
14. Wasserman, N., The Founder’s Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup, Princeton, NJ: Princeton University Press, 2012.
15. Autio, E., Sapienza, H. J., Almeida, J. G., Effects of Age at Entry, Knowledge Intensity, and Imitability on International Growth, Academy of Management Journal. 41, 921-945 (2017).
16. Datalabs website - https://inc42.com/datalabs/
17. Crunchbase website - https://www.crunchbase.com/organization/crunchbase
18. LinkedIn website - https://gb.linkedin.com/company/linkedin

Downloads

Published

2026-03-23

Issue

Section

Conf. Issue: Recent Advances in Computational and Applied Mathematics: Mode...