How does equity crowdfunding differ from other types of crowdfunding?
A)Investors are given the opportunity to become company shareholders.
B)Funds are raised from a community of angel and venture capitalists.
C)Funds are provided by the government.
D)Financial institutions are allowed to raise funds on these sites.

Question

Quizplus · Accepted Answer

Equity crowdfunding allows investors to become shareholders of the company, while other types of crowdfunding do not offer this option. Choice B is incorrect because angel and venture capitalists are not considered part of a crowdfunding community. Choice C is incorrect because funds from equity crowdfunding are not provided by the government. Choice D is incorrect because financial institutions are not typically allowed to participate in equity crowdfunding.

How Does Equity Crowdfunding Differ from Other Types of Crowdfunding