Human capital
We collected basic information about every person
listed as a member of the management team,
board of directors, or advisory board. For each
person we directly coded information contained in
the business plan: name, title, and other attributes,
such as educational and professional background
and prior entrepreneurial experience. Where information
was not reported in the plan, we made
inferences based on the information that was
included. For instance, if an individual claimed
to have an advanced degree, but there was no
mention of a bachelor’s degree, we assume that
a bachelor’s degree was earned as a prerequisite.
Although our unit of analysis is the request,
much of our information pertains to individual
team members. To aggregate information about
team members, we took either team means, maximums,
or alternatively, we used dummy variables
that took the value of one if any of the team
members had a particular attribute. For example,
as described below, we used the mean number of
prior companies in a team member’s work experience,
and used a dummy variable to indicate
whether any of the members reported receiving
an MBA degree. These aggregation decisions are
arbitrary, and hence we explore the robustness of
our results to different aggregation assumptions in
the Results section.
Educational human capital
We code whether educational attainment was reported,
and if so, the degrees attained. Educational
attainment was not generally disclosed in
the documents. Only 18 percent of the solicitations
report any BA experience of team members.
Human capital
We collected basic information about every person
listed as a member of the management team,
board of directors, or advisory board. For each
person we directly coded information contained in
the business plan: name, title, and other attributes,
such as educational and professional background
and prior entrepreneurial experience. Where information
was not reported in the plan, we made
inferences based on the information that was
included. For instance, if an individual claimed
to have an advanced degree, but there was no
mention of a bachelor’s degree, we assume that
a bachelor’s degree was earned as a prerequisite.
Although our unit of analysis is the request,
much of our information pertains to individual
team members. To aggregate information about
team members, we took either team means, maximums,
or alternatively, we used dummy variables
that took the value of one if any of the team
members had a particular attribute. For example,
as described below, we used the mean number of
prior companies in a team member’s work experience,
and used a dummy variable to indicate
whether any of the members reported receiving
an MBA degree. These aggregation decisions are
arbitrary, and hence we explore the robustness of
our results to different aggregation assumptions in
the Results section.
Educational human capital
We code whether educational attainment was reported,
and if so, the degrees attained. Educational
attainment was not generally disclosed in
the documents. Only 18 percent of the solicitations
report any BA experience of team members.
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