RESEARCH / ENTREPRENEURSHIP · CALIFORNIA MANAGEMENT REVIEW · 2016

Are Syndicates the Killer App of Equity Crowdfunding?

Christian Catalini · Ajay Agrawal · Avi Goldfarb

First page of 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.