Measuring Founding Strategy
نویسندگان
چکیده
We introduce a novel approach to measure the founding strategic differentiation of startups and its relationship follow-on performance. use natural language processing historical websites estimate similarity between website an individual startup, public firms at startup’s year, other founded in same year. propose that distance value proposition stated these represents market. Startup is estimated as average text-based from five closest incumbents (public firms). implement this using large sample Crunchbase. Our predicts meaningful increase early-stage financing equity outcomes, unconditionally controlling for cohort industry fixed effects. The positive benefits outcomes only evidence themselves after year 6 age, suggesting more differentiated may take longer prove themselves. Using out-of-sample tests, we also demonstrate our economically important, predicting 30% total variation receipt 20% outcomes. Public datasets score scraped data are provided, together with open-source code replicate settings. This paper was accepted by Joshua Gans, business strategy. Supplemental Material: files online appendices available https://doi.org/10.1287/mnsc.2022.4369 .
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ژورنال
عنوان ژورنال: Management Science
سال: 2023
ISSN: ['0025-1909', '1526-5501']
DOI: https://doi.org/10.1287/mnsc.2022.4369