Crowdfunding in Nigeria is a means through which businesses can raise capital by pooling together small amounts of money from a large number of people instead of raising funds from few investors. It is also used to raise funds for personal financial emergencies, medical emergencies or for charitable purposes.
This is usually done via internet platforms and through social media platforms, as it has proven to be the quickest and fastest way to reach a larger number of people in the country.
There are also several platforms set up specifically for crowdfunding.
There are lots of crowdfunding sites that assist you with your business capital. They include;
Kickstarter: is a funding platform for creative projects. It is a great platform for artists, filmmakers, musicians, designers, writers, illustrators, explorers, curators, promoters, performers, and others to bring their projects and ambitions to life. Kickstarter applies a 5% fee to collected funds.
NaijaFund: This is a crowdfunding platform that empowers everyone and enables people to raise funds for anything including business. While it’s free to create and share your online fundraising campaign, NaijaFund will deduct a 10% fee from each donation you receive.
Fundanenterprise: This is a donation-based crowdfunding website built specifically for fundraising activities, solely in the form of grants to support start-ups, micro, small and medium-sized enterprises in Nigeria and beyond.
CircleUp: if your business is focused on building and producing consumer brands, check out CircleUp as its one of the best equity crowdfunding platforms around.
If you’re an entrepreneur working to get your consumer product on the market, CircleUp offers an exciting array of services, including a platform for connecting with accredited investors, insights from machine-learning technology, and access to special lines of credit for startups.
MicroVentures: MicroVentures is an equity crowdfunding investment platform, combining the best of venture capital with equity crowdfunding. Since 2009, MicroVentures has been helping businesses (including Facebook) access capital from both accredited and non-accredited investors.
Indiegogo: is a global crowdfunding platform empowering people around the world to fund projects and ideas that matter to them. The platform enables individuals and startups to generate pre-sales and collect feedback from early adopters before they manufacture their products.
Explaining how the crowdfunding works in the agriculture sector, the head, agric and microinsurance department, Leadway Assurance, Mr Ayoola Fatona, lists the stakeholders involved, especially, in the agric sector to include: the agrictech company, the investing public, the farmers, and insurance companies.
Stating that agrictech company crowd-funds from the public and disburse such money to the farmers as cheap loans, he says the investing public expects returns on the money they invested, while insurance company covers insurable risks in this process.
On her part, the associate director/ head, Corporate Communications & Services, Leadway Assurance, Ms Olubunmi Adeleye, charged the investing public to seek investment experts advice before entering into a crowdfunding transaction, urging them to also do due diligence on the company raising the funds.