Preprint can be found at: https://www.preprints.org/manuscript/202401.0368/v1
This project predicts if an Indian technology startup will succeed or not with given parameters. The data is sourced from Crunchbase.
Startups are playing increasingly influential roles in the technology sector of the world. India has been a rapidly growing economy and hosts over one hundred thousand total startups. Investors have been increasingly investing in the Indian technology sector. However, the Indian startup ecosystem is different to the American startup ecosystem and requires a separate analysis to determine important influences for their success. Through this research with responsible machine learning, entrepreneurs will be empowered to better understand how to successfully raise their company. I collected data from Crunchbase and defined a successful startup as one who has acquired another company, was acquired, or went public. I used Random Forest, XGBoost, LightGBM, and CatBoost to predict the success of the startups. To determine the most important factors, I used the feature importance tools provided by the models. I compared these results and found that the time taken between the founding and first funding of the company, commonly referred to as seed lag, was the most pivotal factor to every model’s prediction of success.