Predicting Start-up Acquisition Based on Start-up Profile

The research was conducted in order to find out factors that would define start-up’s probability to be successful. Future potential acquisition was chosen as a proxy variable of success. Within the framework of research it was designed a regression model that included factors which were assumed to be relevant in terms of predicting start-up potential acquisition. As a result, the model turned out to be significant with some factors to be unexpectedly insignificant : number of funding rounds, total funding, time existence, foreign investors, number of employees turned out to be significant factors while location in California, time before the 1st round, MBA degree of founders and founder experience turned out to be insignificant. After testing this model on control data it was obtained a 64% accuracy rate what is quiet a good result and model can be useful and beneficial.