Predicting success in the worldwide start-up network

Abstract

5 Complexity Science Hub Vienna (CSHV), Vienna (Austria) † M.B. and V.C. contributed equally to this work. By drawing on large-scale online data we construct and analyze the timevarying worldwide network of professional relationships among start-ups. The nodes of this network represent companies, while the links model the flow of employees and the associated transfer of know-how across companies. We use network centrality measures to assess, at an early stage, the likelihood of the long-term positive performance of a start-up, showing that the start-up network has predictive power and provides valuable recommendations doubling the current state of the art performance of venture funds. Our network-based approach not only offers an effective alternative to the labour-intensive screening processes of venture capital firms, but can also enable entrepreneurs and policy-makers to conduct a more objective assessment of the long-term potentials of innovation ecosystems and to target interventions accordingly. Recent years have witnessed an unprecedented growth of interest in start-up companies. Policy-1 arXiv:1904.08171v1 [physics.soc-ph]

On the Dual Nature of Adoption Processes in Complex Networks

“…While the role of these higher-order structures with respect to the dynamics of spreading and diffusion has started to be explored [63], most of the literature on discovery processes is still limited to pairwise representations. Instead, the fundamental units of scientific productivity are research groups and teams [131,132], and thus higher-order approaches could naturally be used when studying processes of collective scientific discoveries and teamwork [133][134][135]. In fact, scientific collaborations are the perfect examples of higher-order system whose representation demands for non-pairwise building blocks [136,137].…”

Identification of business management improvement factors for start-up companies in Latvia in the conditions of globalization

“…attract funding in the early stages of innovation. In such circumstances, investment funds have a greater role in start-up financing and the best accelerators are trying to move towards investment fund activities (Bonaventura et al, 2020). Associations of regional investors or business angel clubs are formed to concentrate resources.…”

Economic Interplay Forecasting Business Success

“…ere is an ongoing controversy about how growth and innovation are related, but not about the existence of such a connection [2][3][4][5]. Accordingly, there is an increasing interest in developing quantitative frameworks to identify and rate the strategic players of an economic ecosystem [6,7], a task particularly difficult to accomplish when considering the dynamic and high-risk environment of startup companies [8,9]. It is not a case that industrial innovation is one of the 17 Sustainable Development Goals promoted by the United Nations for the next decade; in fact, this aspect is crucial when considering growing economies and developing countries [10][11][12].…”

“…As far as we know, few studies have investigated the economic systems of startup firms within quantitative frameworks [9]. Here, we present a quantitative assessment of interactions involving startups and their investors and a series of practical measurements borrowed by the mathematical graph theory to determine which agents, investors or beneficiaries, can properly be considered as "strategic" for the economic system under investigation.…”