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Table 2 Definitions of variables

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


Dependent variable



1 = startup failed during the observation period


Explanatory variables



1 = CEO states to hold a university degree


Equity offered

Equity offered in the campaign [in percentage points]


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



Number of business angels listed as supporters



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



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



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



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)