On the Mortality of Companies

Abstract

Using data from both the US and UK we examine the survival and mortality of companies in both the early stage or start-up and mature phases. The shape of the mortality curve is broadly similar to that of humans. Even small single cellular organisms such as rotifers have a similar shape. The mortality falls in the early stages in a hyperbolic manner until around 20–30 years when it begins to rise broadly according to the Gompertz exponential law. To explain in simple terms these features we adapt the MinMax model introduced by the authors elsewhere to explain the shape of the human mortality curve.

Keywords

• mortality
• companies
• start-up
• FTSE100
• Gompertz
• MinMax