Table 2 Definitions of variables
From: Signals in equity-based crowdfunding and risk of failure
| Â | Dependent variable | |
|  | Failure | 1 = startup failed during the observation period |
| Â | 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 |
| Â | #BA | Number of business angels listed as supporters |
| Â | #VC | Number of venture capitalists listed as supporters |
| Â | #Other investors | Number of other investors listed as supporters |
| Â | #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) |
| Â | #Updates other | Number of updates that do not fit in one of the previous categories |
| Â | Control variables | |
| Â | Start campaign | Start of the campaign, measured in years since the launch of Companisto |
| Â | 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 |
| Â | #Investors | Number of investors |
|  | Funding amount | Amount of capital raised [in € million] |
| Â | 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 |
| Â | 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 |