Which is true about crowdfunding?

Question

Quizplus · Accepted Answer

Equity crowdfunding is indeed a suitable option for entrepreneurs who plan to grow their company and eventually sell it. This method involves selling a stake in the company to a large number of investors in exchange for financing, making it an attractive option for businesses with growth and exit strategies that might appeal to investors looking for equity in a potentially successful venture. Donation-based crowdfunding, on the other hand, is typically not used for ventures that require multiple rounds of funding over time, as it does not provide a financial return to the supporters.

Which Is True About Crowdfunding