Crowdfunding campaigns reduce venture capitalists' need for syndication partnerships.
Crowdfunding campaigns can affect how venture capitalists invest in startups. A study looked at 504 ventures from 2009 to 2016, finding that ventures with crowdfunding campaigns are less likely to get funding from multiple investors. However, they are more likely to attract international investors. This suggests that crowdfunding can help investors better understand startups, making them less reliant on forming investment partnerships.