

Is crowdfunding the new tech bubble? Or just a good old-fashioned junk bond? - sudomake
http://www.theglobeandmail.com/report-on-business/small-business/sb-digital/innovation/is-crowdfunding-the-new-tech-bubble-or-just-a-good-old-fashioned-junk-bond/article23823686/

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prostoalex
In the absence of access to good deals it would be fair to say 'yes', and view
crowdfunding as the method of last resort when VC or angel deals don't work
out.

With that said, AngelList did a round for Uber, FundersClub did Instacart, and
Wefunder did Zenefits, so the dealflow might not be of the quality that a
brand-name VC/angel would get, but it's also not 100% reverse selection bias
all the way.

One troubling indicator is how quickly all of crowdfunding models converged to
syndicate models. While it's helpful and time-efficient to have the lead do
proper due diligence, the incentives for a popular syndicate lead is to do as
many deals as possible, featuring the winners and sweeping the failures under
the rug.

