Application of Hierarchical Agglomerative Clustering for the Segmentation of Startups in Latin America (International Journal of Combinatorial Optimization Problems and Informatics.)
Summary
- The study gathered data on 1,274 active Latin American startups after excluding 533 inactive companies.p.6
- Among 1,072 startups with financing data, 61.8% (662 startups) had reached funding stages before Series A, while 18.1% (194 startups) had no funding rounds.p.7
- Agglomerative hierarchical clustering identified 3 distinct startup profiles based on age, financing stage, and social media followers.p.9
- Cluster 2 represents 444 young startups (mostly 6 years old or less) that have already secured pre-seed or seed capital.p.10
- Cluster 3 encompasses 434 growth and expansion startups, representing 40.4% of the dataset, with higher capital raised and superior digital visibility.p.12
Key insights
- Brazil recorded the highest median capital raised at 3,900,000.00 dollars, showing statistically significant differences compared to Mexico, Chile, Peru, and Central America.p.8
- Approximately 57% of Latin American startups have two founders, while only 34% feature female founders.p.4
- Startups participating in advanced investment rounds exhibit larger social media followings, supporting a network effect in audience acquisition.p.14
Topics and entities
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