As if having an awesome product isn't hard enough: A study published in the peer-reviewed academic journal Venture Capital has found that a startup's name can seriously affect how a company is perceived by investors.
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Startups with unique names get more funding— at least in the beginning (YHOO)
Unique names do better at early stages, but the novelty wears off for investors.
But don't go registering for that unintelligible URL just yet: The novelty wears off by later stages, when unique names can make investors feel uncomfortable.
These results came from researchers in the business schools at Stony Brook University, Drexel University, and Villanova University, who conducted a two-part study which analyzed how names affect funding. In the first part, the researches looked at 131 crowd-funded projects. In the second study, the researches analyzed 1681 IPOs.
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