It flipped its stance in September last year, warning investors to stay away from digital equity crowdfunding platforms. Some of the potential benefits of equity-based and P2P crowdfunding are apparent. The immaturity of digital crowdfunding globally and the start-up sector in India mean that these come with plenty of caveats, however. Venture capital (VC) comes paired with institutional expertise in making the right wager—and outside the top funds, still has a poor rate of success. Such initial hiccups are understandable given the difficulty of finding the right balance.

Source: Mint August 20, 2017 17:48 UTC