Startup founders and their LinkedIn connections: Are well-connected entrepreneurs more successful?

For the past 40 years, entrepreneurs and researchers have assumed that entrepreneur networks are important for startup ventures. This study takes this notion further by testing whether these benefits translate into tangible financial outcomes for a startup. For this purpose, the study integrates two extensive databases that have not been studied together in previous research: Crunchbase.com, which provides information on the financial success of startup companies, and LinkedIn, which provides social network information of founders. The analysis revealed that several variables in LinkedIn profiles were positively correlated with the amount of funds raised by startup companies establishing a link between social networks and entrepreneurial success. The average number of followers that the founders of a company had according to their LinkedIn profile was the strongest predictor of the amount of funds raised by companies.