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.

Q: Answer-Which of the following statements correctly differentiate Crowdfunding from Angel Investing? Crowd...

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 SEBIs jurisdiction. Angel Investing also has some guidelines, but its less regulated.