An Analysis of Key Performance Factors Within the Venture Capital and Entrepreneurial Ecosystem and how Could Startup Companies Prepare Themselves for M&a or Ipo

Abstract Book of the 11th International Conference on Research in Business, Management and Economics

Year: 2026

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An Analysis of Key Performance Factors Within the Venture Capital and Entrepreneurial Ecosystem and how Could Startup Companies Prepare Themselves for M&a or Ipo

Prof. Dr. Pui Mun Lee, Lim Hong Liang

ABSTRACT:

This paper provides findings from an analysis of key performance factors within the private equity and entrepreneurial ecosystem. Relevant data from Crunchbase of 40 incubators, 120 accelerators, 594 venture capitalist firms and 701 investee/startup companies from 2010 to August 2025 were extracted. Structural equation models were used to analyze relationships between sets of variables deemed to be possible key performance factors to performance and success. Different gauges of performance and success were used for the three types of investors mainly, incubators, accelerators and venture capital firms. Characteristics attractive for Merger & Acquisition (M&A) or Initial Public Offering (IPO) are also proposed for investee companies. Findings show strong network of reputable lead investors and knowledge of the industries are significant to incubators. Reputable lead investors followed by the number of investors are significant to accelerators. For venture capitalist firms, age is significant reflecting accumulated experience and greater access to funds. Investee companies’ size, debt levels and liquidity are significant to become an attractive M&A target. Information symmetry from active publicity and announcements of strong earnings prospects and effective marketing enable the investee company to become IPO ready. Magnitudes of the observable variables were also observed.

Keywords: Entrepreneurial Ecosystem, Incubator, Accelerator, Startups, Venture Capitalist, Key Performance Factors