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    Question

    Which of the following statements correctly

    differentiate Crowdfunding from Angel Investing ?  Crowdfunding involves raising small amounts from multiple individuals, whereas Angel Investing is done by wealthy individuals providing capital to startups.  Angel Investors typically seek equity in return, while Crowdfunding can be donation-based or reward-based.  Crowdfunding is strictly regulated by SEBI, while Angel Investing operates independently without regulatory intervention. 
    A 1 and 2 only Correct Answer Incorrect Answer
    B 2 and 3 only Correct Answer Incorrect Answer
    C 1 and 3 only Correct Answer Incorrect Answer
    D 1, 2, and 3 Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    • Statement 1 is correct: Crowdfunding relies on small investments from many backers, while Angel Investors fund startups directly. 
    • Statement 2 is correct: Angel Investors usually take an equity stake, whereas crowdfunding may offer rewards or donations instead of shares. 
    • Statement 3 is incorrect: Crowdfunding regulations are evolving, and not all forms fall under SEBI’s jurisdiction. Angel Investing also has some guidelines, but it's less regulated. 

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