|Signal||Studies on offering success||Studies on post-offering success|
A degree (in economics) increases the number of investors on:|
- ASSOB (Ahlers et al. 2015)
- SiamoSoci (Piva and Rossi-Lamastra 2018)
In addition, Goethner et al. (2020) demonstrate on Companisto that a PhD increases the probability of investments.
|To the best of our knowledge, our study is the first to investigate the relationship between a university degree of the CEO and post-offering success.|
|Equity stake offered||
A decrease of the equity offered is associated with a higher number of investors on:|
- ASSOB (Ahlers et al. 2015)
- Crowdcube (Ralcheva and Roosenboom 2016)
- Crowdcube and Seedrs (Vismara 2016)
Smaller equity stakes offered increase the chances to reach the funding target on Crowdcube (Cumming et al. 2019).
Recent studies provide mixed results.|
The following results indicate that smaller equity stakes offered are positively related to post-offering success in the UK:
- Cumming et al. (2019) find that smaller levels of equity offered increase the likelihood of success and decrease the probability of failure (Crowdcube, UK)
- Signori and Vismara (2018) find no significant effect on the risk of failure (Crowdcube, UK)
- Signori and Vismara (2016) find that equity offered is negatively related to the probability of seasoned equity offerings, which they consider a success (Crowdcube, UK)
In contrast, Hornuf et al. (2018) find that higher equity stakes offered are associated with lower probabilities of failure using a sample of 13 platforms from the UK and Germany.
Our study attempts to clarify the role of equity offered on the German equity-based crowdfunding market. This is of particular interest as other forms of financial instruments (without voting rights) are used in Germany.
|Reputable (professional) investors||Support by reputable (professional) investors is positively related to the number of investors on Crowdcube (Ralcheva and Roosenboom 2016).||
Mixed results on the effects of reputable (professional) investors exist.|
Signori and Vismara (2018) find a positive effect of professional investor backing on post-offering success. In their sample no venture that was backed by professional investors failed subsequently.
In contrast, Hornuf et al. (2018) find that a higher number of initial VC investors is associated with a higher probability of failure.
With our study, we want to test how reputable investor backing and post-offering success are related in Germany.
Large investments of other investors have a positive effect on willingness to invest:|
- Hornuf and Schwienbacher (2018) demonstrate a positive effect of large investment on the number of investments in the subsequent days on Companisto and three other German platforms
- Walther and Bade (2020) show that large investments increase investors’ willingness to pay on Companisto
|To the best of our knowledge, our study is the first to study the relationship of large investments and post-offering outcomes.|
|Updates||An update increases the number of investments on various German platforms including Companisto (Bade and Walther 2021; Block et al. 2018a; Hornuf and Schwienbacher 2018). Block et al. (2018a) also show that the investor reaction depends on the updates’ content.||To the best of our knowledge, our study is the first to investigate the relationship between the number of updates and post-offering outcomes.|