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Analysis of Factors Influencing Startup Success in Sweden

Henriksson, Marc LU and Andersson, Lukas (2024) NEKH02 20241
Department of Economics
Abstract
In this thesis, the relationship between venture capital (VC) investments and startup success in Sweden is analysed. The selected startups have operated between 2010 and 2015, and have been funded by VC investments between 2010-2022. As a subgroup of private equity firms (PE), VCs support startups financially and strategically to expand companies.


Logistic and linear regression models have been conducted to analyse cross-sectional data obtained from 238 startups, which received funding from 10 specific VC firms in Sweden, encompassing a total of 256 investments in the selected startups. The key variables examined include the presence of serial founders, founders' educational backgrounds, sectors of the startups, and the nature of the... (More)
In this thesis, the relationship between venture capital (VC) investments and startup success in Sweden is analysed. The selected startups have operated between 2010 and 2015, and have been funded by VC investments between 2010-2022. As a subgroup of private equity firms (PE), VCs support startups financially and strategically to expand companies.


Logistic and linear regression models have been conducted to analyse cross-sectional data obtained from 238 startups, which received funding from 10 specific VC firms in Sweden, encompassing a total of 256 investments in the selected startups. The key variables examined include the presence of serial founders, founders' educational backgrounds, sectors of the startups, and the nature of the VC firm (governmentally or privately funded). The dependent variable explains the startups’ success through an initial public offering or acquisition.


Results indicate that the presence of serial founders significantly increases the likelihood of success, alongside factors such as revenue size and the startup founder’s alma mater. Other variables, such as the startup sector and the nature of the VC firm, showed less consistent impact. These findings highlight the importance of experienced entrepreneurs in driving startup success and suggest that future research could incorporate additional variables or a time aspect through panel data to enhance predictive accuracy. (Less)
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author
Henriksson, Marc LU and Andersson, Lukas
supervisor
organization
alternative title
Exploration of what factors influence the acquisition or IPO of startups funded by Venture Capital firms in Sweden
course
NEKH02 20241
year
type
M2 - Bachelor Degree
subject
keywords
Venture Capital, Startup, Investments, Finance, Econometrics
language
English
id
9156041
date added to LUP
2024-09-24 08:59:37
date last changed
2024-09-24 08:59:37
@misc{9156041,
  abstract     = {{In this thesis, the relationship between venture capital (VC) investments and startup success in Sweden is analysed. The selected startups have operated between 2010 and 2015, and have been funded by VC investments between 2010-2022. As a subgroup of private equity firms (PE), VCs support startups financially and strategically to expand companies.


Logistic and linear regression models have been conducted to analyse cross-sectional data obtained from 238 startups, which received funding from 10 specific VC firms in Sweden, encompassing a total of 256 investments in the selected startups. The key variables examined include the presence of serial founders, founders' educational backgrounds, sectors of the startups, and the nature of the VC firm (governmentally or privately funded). The dependent variable explains the startups’ success through an initial public offering or acquisition. 


Results indicate that the presence of serial founders significantly increases the likelihood of success, alongside factors such as revenue size and the startup founder’s alma mater. Other variables, such as the startup sector and the nature of the VC firm, showed less consistent impact. These findings highlight the importance of experienced entrepreneurs in driving startup success and suggest that future research could incorporate additional variables or a time aspect through panel data to enhance predictive accuracy.}},
  author       = {{Henriksson, Marc and Andersson, Lukas}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Analysis of Factors Influencing Startup Success in Sweden}},
  year         = {{2024}},
}