What Makes a Startup Succeed?
According to recent studies, nearly 90% of startups fail within the first decade of operation. Understanding the factors that contribute to startup success or failure is crucial for improving outcomes and reducing risks.
Team Byte Wizards from Northeastern University in Toronto, Ontario, set out to answer this question in their Curiosity Cup 2025 project by building predictive models using SAS analytics.
Using a dataset of 923 startups, they tested three models – logistic regression, decision tree, and random forest – to explore key success factors, including:
- Funding amount
- Number of milestones achieved
- Venture capital or angel investor involvement
The random forest model stood out with the highest accuracy (78%) and provided a clear key takeaway: Startups with higher funding, investor support, and clear, achievable milestones have a significantly better chance of success.
This is a great example of how data can guide smarter decisions in the startup world, and placed Team Byte Wizards in the top 15 out of 112 teams globally. Congratulations!
Team Byte Wizards: Nikhita Naga, Yasaswi Manthena, Natalia Raj, and their Faculty Advisor, Dr. Ganesh Subramanian, PhD.
Check out their full paper attached (below the blue headline).
