In crowdfunding, what do investors typically receive in exchange for their investment?

• A. Ownership shares
• B. Interest payments
• C. Promotional discounts
• D. Rewards or stakes in the company

Answer: (D)

In crowdfunding, investors typically receive rewards or stakes in the company in exchange for their investment. This means that, rather than receiving a financial return in the form of interest or ownership shares, they may receive non-financial rewards such as products, services, or other incentives as appreciation for their support. This model encourages participation by appealing to individuals' desire to contribute to a project they are passionate about, while also getting something in return that might not carry a direct monetary value.

Rewards can take many forms, such as early access to a product, exclusive merchandise, or experiences related to the project. Additionally, in certain types of crowdfunding, particularly equity crowdfunding, investors may receive a stake in the company, allowing them to benefit from future profits or company growth. However, the notion of rewards is more commonly associated with traditional crowdfunding models, especially reward-based platforms. This approach fosters community and builds a strong supporter base for new ventures.