Success Factor of Start-up Fund Raising in ASEAN

Abstract

The objectives of this study aim to explore the factors determining the success in fund raising activities of startup companies in ASEAN in seed and early stage fund raising as well as creating the predictive model of probability of success in startup fund raising based on determined factors. The logistic regression model was applied to determine the success factors based on 11 factors of 23 parameters. Data collection includes 1,058 Seed Stage transactions and 656 Early Stage transactions of startup companies in six ASEAN countries during 2000-2017. We applied the publicly available measurement of parameters that able to access with up-to-date data in our studies in order to democratize the evaluation process aim to benefit the users in a fast-changing environment. The result of Seed model suggested Investor location, Education, Market Response, Firm location, Industry, Management Experience and Network are keys determining the success factor. On the other hand, the Early stage model suggested Education, Investor location, Market Response, Location, Industry, Management Experience and Firm Age are statistically significant to the fundraising success. Seed model accuracy is 63% and Early stage model accuracy is 65%.