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.

Both statements are correct. Statement 1 correctly defines crowdfunding as solicitation of small amounts of funds from multiple investors through web-based platforms (like Kickstarter, Indiegogo, Ketto) or social networking sites for specific projects. Statement 2 is correct because crowdfunding allows SMEs and startups to raise capital at lower cost by bypassing traditional financial intermediaries (banks, venture capitalists) and the rigorous regulatory procedures associated with conventional fundraising methods like IPOs or bank loans. It democratizes access to capital for small enterprises. SEBI has been working on frameworks to regulate equity crowdfunding in India.