Online Syndicates and Startup Investment

  title={Online Syndicates and Startup Investment},
  author={Christian Catalini and Xiang Hui},
  journal={National Bureau of Economic Research},
Early crowdfunding platforms were based on a premise of disintermediation from professional investors, and relied on the ‘wisdom of the crowd’ to screen high quality projects. This becomes problematic when equity is involved, as the degree of asymmetric information between entrepreneurs looking for funding and the crowd is higher than in reward-based crowdfunding. As a result, platforms later experimented with incentives for professional investors to curate deals for crowd. We study how the… 
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