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Topic-based classification and identification of global trends for startup companies
Ivan Savin1,2, Kristina Chukavina2, Andrey Pushkarev2
1Institute of Environmental Science and Technology, Universitat Autònoma de Barcelona, Barcelona, Spain.
Small Business Economics
|April 16, 2024
Summary
Startup trends reveal shifts towards data analytics and social platforms, with regional variations in focus areas like sustainable agriculture and pharmaceuticals. This analysis provides a new, unbiased classification of over 250,000 companies.
Area of Science:
- Business and Economics
- Data Science
- Sociology
Background:
- Understanding emerging market leaders is crucial for forecasting global economic trends.
- The Crunchbase database contains extensive textual descriptions of startup companies.
Purpose of the Study:
- To develop a novel, unbiased classification of startup companies using topic modeling.
- To analyze the evolution and regional distribution of startup topics from 2009-2019.
Main Methods:
- Topic modeling applied to textual descriptions of over 250,000 startups.
- Analysis of startup establishment year and geographical location.
- Quantification of topic co-occurrence and investment attraction.
Main Results:
- A new 38-topic classification of startups was created.
- Increasing trends observed in data analytics, social platforms, financial transfers, and time management startups.
- Decreasing trends noted in mobile gaming, online news, social networks, and legal/professional services.
- Significant regional differences in topic concentration (e.g., sustainable agriculture in South America/Africa, pharmaceutics in North America/Europe).
Conclusions:
- The study provides a dynamic, data-driven understanding of startup evolution and regional specialization.
- The novel classification system offers improved insights compared to existing databases.
- Findings highlight key shifts in innovation and investment focus within the startup ecosystem.
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