Are Crowdfunding Platforms Active and Effective Intermediaries?

Crowdfunding platform due diligence comprises background checks, site visits, credit checks, cross checks, account monitoring, and third party proof on listed projects. Based on data from over 70% of Canadian platforms over the years 2013-2016, we find that due diligence application is associated with busyness of platform employees, sophistication of platform service indicated by fee structure, and type or complexity of campaigns. We hypothesize...