10 Best Crowdfunding Sites In Nigeria To Fund Your Business (2024)
You’ve probably seen people or organizations on social media platforms like Twitter and Facebook running campaigns on their walls to raise money for a specific project, business, or person. Crowdfunding can be used to describe such fundraising campaigns.
Obtaining funds for a project or business in Nigeria is a difficult task, especially when you are just getting started, but you can rest assured that some excellent Crowdfunding sites or platforms can assist you in achieving your objectives.
According to Wikipedia, over $34 billion was raised through crowdfunding in 2015 to fund one or two things, as previously stated. This equates to approximately 12,308,000,000,000 Naira (12.3 Trillion Naira)!
Since then, the amount would have risen each year.
TYPES OF CROWDFUNDING
There are 3 major types of crowdfunding and these include:
1. DONATION-BASED CROWDFUNDING
This is one of the world’s popular types of crowdfunding. People donate to a good cause without expecting anything in return. It could be for the benefit of accident victims, sick patients, businesses, or other worthwhile causes.
2. REWARDS-BASED CROWDFUNDING
Rewards-based crowdfunding is a type of crowdfunding in which people contribute small amounts of money to a project in exchange for rewards. The rewards will be determined by the amount donated, and they may include a thank you card or a gift.
3. EQUITY-BASED CROWDFUNDING
Partnering with people is another way to fund that great business idea. This usually entails the fundraisers receiving funds from people looking for a way to make money as a sleeping partner. As a result, they will own a certain percentage of the company’s equity.
TOP 10 BEST CROWDFUNDING SITES TO FUND YOUR BUSINESS IDEAS
Here’s a list of the best crowdfunding platforms for an innovative idea, entrepreneurship, products, or even a service:
GoFundMe is a donation-based crowdfunding site that is extremely popular in Nigeria and around the world.
Anyone can use the GoFundMe platform because it is so simple. You can easily set up an account and watch the small drops grow into something larger.
The payment processing platform takes 2.9 percent of the total donation, while GoFundMe takes 5%.
Another equity crowdfunding website that is used to raise funds for businesses is Crowdfunder.
Because of its large number of angel investors, this company may be able to assist individuals who are looking to scale as quickly as possible.
NaijaFund is one of Nigeria’s most popular crowdfunding platforms for almost any purpose. It could be used for things like business start-ups, new phones, gadgets, medical bills, and house rent, among other things.
You can easily share your crowdfunding campaign with friends, families, or anyone using social media platforms after you’ve created it on NaijaFund.
You will be able to run up to 5 campaigns at once on NaijaFund. Please be aware that NaijaFund charges a 10% fee on all donations made to you, as well as a 2% processing fee as transaction fees for a third-party payment processor.
Kickstarter was founded in 2009 and is one of the most popular crowdfunding platforms. It is only recently becoming popular in Nigeria and other African countries.
Its headquarters is in Brooklyn, New York, USA, and its services are available all over the world; their service revolves around art and creativity, as do most crowdfunding websites. Any creative individual or organization could easily raise funds using Kickstarter.
There are project creators and backers on Kickstarter. The project creators use the Kickstarter platform to present their ideas, and if the backers think the creativity is top-notch, they can donate money. Using images, videos, and texts, the project creators will be able to reveal project details and prototypes.
Depending on the scope of the project, this could take some time. The backers will be able to see the final product once it has been completed. A backer will not be charged if a project creator is unable to meet his or her funding goal. If the project is successfully funded, Kickstarter will take 5% of the total funds raised.
Indiegogo functions similarly to Kickstarter, with a few minor differences. The main difference is that Kickstarter only releases funds if the objectives are met, whereas Indiegogo gives you the option of receiving funds as backers contribute or waiting until the objectives are met.
Crowdcube is an equity-based crowdfunding platform that allows people to find partners to invest money in their business.
Anyone who makes a financial contribution to a business on Crowdcube becomes a shareholder. How much of a stake you have in the company is determined by the number of shares you bought or the shares issued to you. Your share certificate will be mailed to you after your application has been processed.
FundAnEnterprise is a startup equity-based crowdfunding website that was created to help entrepreneurs and business owners get funding.
This Nigerian crowdfunding site can help entrepreneurs, micro, small, and medium-sized businesses raise funds.
Entrepreneurs can also use CircleUp to get the funds they need to start or expand their business. CircleUp, an equity-based crowdfunding platform, has been around since 2012 and is credited with being one of the reasons why startups are succeeding due to capital provided through credit and capital financing.
Fundly is an online fundraising website that accepts donations.
Charities, individuals, churches, mosques, teams, politicians, and others can use the platform to raise funds from friends, donors, colleagues, backers, or anyone using social media platforms like Facebook, Twitter, and LinkedIn.
You will be able to tell your stories through videos, texts, or photos on Fundly. You can also create a slide using content from a third-party source such as Youtube, Facebook, Vimeo, or your computer to help your crowdfunding campaign.
Fundly charges a 4.9 percent platform fee, while Stripe charges 2.9 percent + $.30 per transaction for credit card processing.
Patreon is another Nigerian CrowdFunding site for content creators to help them fund amazing projects.
In the world of crowdfunding, Patreon is more like Facebook; you post your ideas, invite your fans, and ask them to fund them. Many types of creators, including video creators, podcasters, musicians trying to make a living, and many others, use Patreon to fund their ideas, and if you fall into any of these categories, you should be using it.
It’s simple to use; simply sign up and spread the word to your followers. Take some time to personalize your profile. Patreon allows you to fund any project with just a few clicks.
Please keep in mind that outsourcing for money or donation requires a compelling reason supported by evidence.