RESEARCH / ENTREPRENEURSHIP · CALIFORNIA MANAGEMENT REVIEW · 2016
Are Syndicates the Killer App of Equity Crowdfunding?
Summary
Equity crowdfunding promised disintermediation, but equity contracts amplify information asymmetry and moral hazard. This article examines online syndicates — a professional lead investing alongside a backing crowd — as a market-design answer that returns evaluation to those best placed to do it while keeping access broad.
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