Revising the ‘Liability of Newness’? A Review on How Hot-growth Start-ups (HGSUs) Overcome it

What factors lead hot-growth start-ups (HGSUs) to overcome infant mortality? To date, hot-growth entrepreneurial species, i.e. gazelles, Unicorns, and VC-backed companies, significantly challenge the common perceptions traditionally associated with their liability of newness. Relatedly, a knowledge gap exists in understanding what specific characteristics facilitate each of these exceptional entrepreneurial species to overcome infant mortality. A systematic literature review (SLR) of 70 HGSU articles dealing with the determinants of infant survival has been elaborated and read according to the liability of newness lens. Unicorns are featured by a high-scalable business model based on platform services, but they require huge investments to support rapid growth. For gazelles, instead, the relationship with the local environment seems to be another pivotal element for survival. In all three categories, investors play a key role in overcoming the usual initial lack of experience, coordination, stable ties, and trust. Without their support, the development of their life cycle is seriously undermined. With regard of gazelles, Unicorns, and VC-backed companies, this is the first article providing: i) their different characteristics, ii) discussing and comparing their survival determinants, and iii) proposing a conceptual synthesis of the life cycle of hot-growth start-ups able to forecast their trajectories.