VC Versus Non-VC Startups: A Comparative Analysis of Founder and Firm Attributes

By : Amrin Fakih

Page No: 173-187

Abstract:
The rise of startups as engines of economic growth and innovation has brought increased attention to the role of venture capital. This study, aims to investigate the differences between VC-funded and Non-VC-funded startups in terms of founder and firm attributes. We found that the revenue of Non-VC startups is significantly higher in the single-founder case but lower in many many-founder category. Medians of the two groups are equal, indicating the presence of outliers. VC-backed startups were more likely to have work experience in a similar industry. Both male and female startups were equally likely to receive VC investment, but this could be an attribute of our data set. The variable ‘VC investment’ was insignificant in the regression model, indicating comparable revenue performance of both types of startups.

Author:
Amrin Fakih, Research Scholar, CRUA, Institute for Social and Economic Change (ISEC), Bengaluru, Karnataka, 
 

DOI: https://doi.org/10.32381/PROD.2025.66.02.07