Crowdfunding in Nigeria is a way that businesses can raise capital by pooling small amounts of money from a large number of people instead of raising funds from a few investors. It is also used to raise funds for personal financial emergencies, medical emergencies, or for charitable purposes.
This is usually done through internet platforms and through social media platforms as it has proven to be the fastest and fastest way to reach more people in the country.
There are also several platforms set up specifically for crowdfunding.
There are many crowdfunding sites that help you with your business capital. They include;
Starter : is a platform for financing 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 on funds collected.
Naija Fund: It is a crowdfunding platform that empowers everyone and allows people to raise money for everything, including businesses. While it’s free to create and share your fundraising campaign online, NaijaFund will deduct a 10% fee from every donation you receive.
Financing company: This is a donation-based crowdfunding website designed specifically for fundraising activities only in the form of grants to support start-ups, micro, small and medium enterprises in Nigeria and the -of the.
Circle up: If your business is focused on building and producing mainstream brands, check out CircleUp as one of the best equity crowdfunding platforms.
If you are an entrepreneur working to bring your consumer product to market, CircleUp offers an interesting range of services, including a platform to connect with accredited investors, information on machine learning technology, and access. to special lines of credit for startups.
Micro-enterprises: 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 accredited and non-accredited investors.
Indiegogo: is a global crowdfunding platform that allows people around the world to fund projects and ideas that matter to them. The platform allows individuals and startups to generate pre-sales and collect feedback from early adopters before manufacturing their products.
Explaining how crowdfunding works in the agricultural sector, the head of the agriculture and microinsurance department of Leadway Assurance, Mr. Ayoola Fatona, lists the stakeholders involved, particularly in the agricultural sector: the agrotech company, the investing public, farmers, and insurance companies.
Stating that the agro-tech company raises funds from the public and gives that money to farmers in the form of cheap loans, he says the investing public expects returns on the money they have invested, while the insurance company covers insurable risks in this process.
For her part, the Associate Director / Head of Corporate Communications and Services, Leadway Assurance, Ms. Olubunmi Adeleye, tasked the investing public to seek advice from investment experts before committing to a crowdfunding transaction, the investors. urging them to also do due diligence on the company raising the fund.