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    Question

    Which of the following statements correctly

    differentiate Crowdfunding from Angel Investing ?┬а Crowdfunding involves raising small amounts from multiple individuals, whereas Angel Investing is done by wealthy individuals providing capital to startups.┬а Angel Investors typically seek equity in return, while Crowdfunding can be donation-based or reward-based.┬а Crowdfunding is strictly regulated by SEBI, while Angel Investing operates independently without regulatory intervention.┬а
    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.┬а
    • Statement 2 is correct: Angel Investors usually take an equity stake, whereas crowdfunding may offer rewards or donations instead of shares.┬а
    • Statement 3 is incorrect: Crowdfunding regulations are evolving, and not all forms fall under SEBIтАЩs jurisdiction. Angel Investing also has some guidelines, but it's less regulated.┬а

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