Which of the following statements about Crowdfunding is/are correct? 1. Crowdfunding is solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific project. 2. Small and Medium Enterprises (SMEs) are able to raise funds at lower cost of capital without undergoing rigorous procedures. Select the answer using the code given below:

ObjectiveMcq

Print Protected

Printing this content is disabled

This page is protected for print. Use the website to view the content.

UPSC CSE PRELIMS2026General Studies CrowdfundingHard

Which of the following statements about Crowdfunding is/are correct?

Crowdfunding is solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific project.
Small and Medium Enterprises (SMEs) are able to raise funds at lower cost of capital without undergoing rigorous procedures.

Select the answer using the code given below:

Correct Answer: C — Both 1 and 2

Explanation:

Crowdfunding is correctly described as raising small amounts from many people through online platforms for a specific project or venture. It is also a way for SMEs to access funds more easily and often with lower procedural barriers than traditional fundraising routes. Hence both statements are accepted.