Exploring the performance of sustainable and non-sustainable startups: An empirical analysis

Startups play a key role in innovation and development, proving to be players capable of driving change toward sustainable business models. The growing focus on sustainability has also led to changes in the investment landscape, with more capital going to companies that show compliance with Environmental Social Governance (ESG) criteria. Despite the extensive literature linking equity funding to the likelihood of success, the role of sustainability in this context remains underexplored. This study therefore goes to analyze whether sustainability orientation affects the probability of success of startups in terms of exit outcome and operational growth.Through a logistic regression model, the research evaluates the impact of sustainability, considering financial and industry variables. The results show that startups that integrate sustainability into their operations have significantly higher odds of success, suggesting how sustainability represents not only a moral duty but also a strategic advantage, which improves competitiveness. Contrary to the initial hypothesis, however, explicitly sustainable sectors did not prove to be a determining factor. These results offer managerial and strategic perspectives, suggesting how sustainability, often perceived as a limitation, is actually something that should become an essential component of competitive strategy and innovation.