Final answer:
Crowdfunding backers are individuals supporting innovative projects and diverse in demographics. They differ from angel investors and venture capitalists who invest for equity in early-stage startups. (option B.)
Step-by-step explanation:
According to the American Dream Composite Index (2012), crowdfunding backers tend to be individuals supporting innovative projects and are diverse in age, ethnicity, and income.
They are not necessarily entrepreneurs seeking investment opportunities, although some backers may also be investors. The drive behind supporting crowdfunding campaigns is often to help bring new ideas to life and support innovation, rather than focusing primarily on charitable contributions or seeking financial returns on investments.
Angel investors and venture capitalists provide funding in exchange for ownership equity, typically in early-stage startups which may be little more than an idea on paper.
Their investment demonstrates a belief in the firm's prospects with the founders showing commitment by investing their own funds into the business venture.
Thus, the correct option is B.