What is characteristic of the investor model of crowdfunders?
A)Investors provide financial support with no expectation of direct return.
B)Investors are given prizes for their financial support,such as product samples or experiences.
C)Equity is exchanged for the contribution.
D)Funds are treated as loans.

Question

Quizplus · Accepted Answer

The characteristic of the investor model of crowdfunders is that equity is exchanged for the contribution. In this model, investors provide financial support with the expectation of a return on their investment in the form of equity in the company or project they are funding. This is different from other models where funds are treated as donations or loans with no expectation of direct return. Therefore, the correct answer is C.

What Is Characteristic of the Investor Model of Crowdfunders