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Table 2 Definitions of variables

From: Signals in equity-based crowdfunding and risk of failure

  Dependent variable
  Failure 1 = startup failed during the observation period
  Explanatory variables
H1 Degree 1 = CEO states to hold a university degree
H2 Equity offered Equity offered in the campaign [in percentage points]
H3 Reputable investor backing 1 = startup states to be backed by reputable investors
  BA backing 1 = startup states to be backed by business angels
  VC backing 1 = startup states to be backed by venture capitalists
  Other investor backing 1 = startup states to be backed by other investors
  #BA Number of business angels listed as supporters
  #VC Number of venture capitalists listed as supporters
  #Other investors Number of other investors listed as supporters
  #Corporate Investments Number of investments made by corporations during the campaign
H4 #Invest5k Number of investments \(\ge\) €5,000
  #Invest5k corporate Number of investments by corporations \(\ge\) €5,000
  #Invest5k private Number of investments by private individuals \(\ge\) €5,000
H5 #Updates Number of updates during the campaign
   Based on Block et al. (2018a): Thereof the number of updates that contain information on …
  #Updates business development … financial development of the startup and its customer base
  #Updates business model … the business model, the relevant market, or future business orientation
  #Updates campaign development … campaign updates or announcements that the funding limit has been changed
  #Updates cooperation projects … about new collaborations the start-up engaged in
  #Updates external certification … expert opinions, success stories, news about awards received, patent applications, patent approvals as well as press and media coverages
  #Updates new funding … additional funding from business angels, venture capitalists or government grants
  #Updates product development … the product, target costumers, prototypes, or new product inventions
  #Updates promotions … promotions the crowd may receive, open calls to participate via social media, invitations for personal meetings and appeals to investors to support the startup
  #Updates team … the entrepreneurial team (education, previous work experience)
  #Updates other Number of updates that do not fit in one of the previous categories
  Control variables
  Start campaign Start of the campaign, measured in years since the launch of Companisto
  Venture age Age of the startup at the end of the campaign [in years]
  Positive sales 1 = the startup reported positive sales before campaign start
  #Investors Number of investors
  Funding amount Amount of capital raised [in € million]
  Target attainment Ratio of collected to demanded funding amount
  Big city 1 = venture is located in a city with more than a million inhabitants
  Business value Pre-money valuation of the venture [in € million]
  Industry experience 1 = the CEO states to have work experience in the industry of the startup
  Management size Number of members in the entrepreneurial team
  Entrepreneurial company 1 = legal form is UG (haftungsbeschränkt)
  Follow-up campaign 1 = the venture already ran a campaign on Companisto before
  1. This table presents the definitions of variables. The categorization of updates is based on Block et al. (2018a)