Top 10 Crowd Funding Sites to Fund your Business Ideas in Nigeria
In this article, I would be revealing to you crowdfunding platforms that you can use to finance or fund your business idea in Nigeria.
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It is however important that I make sure you understand the concept of crowdfunding before I began revealing to you the top crowdfunding platforms in Nigeria.
Crowdfunding is a way of funding an idea or a venture through the collective effort of a group of people. This method of raising funds is primarily done via the internet through fundraising sites.
Crowdfunding is a very effective way to fund your business. In 2015, over $34 billion was raised worldwide by crowdfunding.
Types of Crowdfunding
It is important you know that there are various types of crowdfunding. This will help you to understand how crowdfunding works.
The type of crowdfunding you choose to utilize depends on the type of idea you have and the goal you intend to achieve.
1. Donation-Based Crowdfunding:
This type of crowdfunding does not profit the contributors in any way. Contributors finance your idea without expecting any financial rewards in return.
Fundraising for medical bills, nonprofits and charity are some donation-based crowdfunding initiatives.
In this type of crowdfunding, individuals contributing to funding your idea are doing so, in exchange for a reward, usually in the form of the product or service your establishment offers.
Although this method of crowdfunding gives rewards to the contributors, it is still considered a subset of donation-based crowdfunding. This is because contributors will not benefit from the income that would be generated from your establishment.
Equity-based crowdfunding allows contributors or investors to become part-owners of your establishment. This, therefore, means that contributors are entitled to the financial return according to their investment, in your establishment.
Top Crowdfunding Sites to Fund your Business Idea in Nigeria
Below are the top crowdfunding sites to fund your business idea in Nigeria.
Kickstarter is a global crowdfunding platform that is created to fund creative ideas. Kickstarter is therefore one of the best crowdfunding platforms for curators, filmmakers, designers, musicians, promoters, illustrators, writers, journalists, cartoonists, and many more.
In 2019, more than $4.6 billion pledges were raised to fund 445, 000 projects. Kickstarter is therefore is great crowdfunding platform or site to fund your creative business idea.
However, it is important to note that Kickstarter runs an all or nothing system. This means that at the end of the fundraising if the contributors were meet the fund you requested, you would get nothing because all of the money will be returned to the contributors. But if at the end of the fundraising, contributors were able to raise the money you requested, the fund would be given to you. A fee of 5% would be charged before you collect the funds.
GoFundMe is a crowdfunding platform that helps individuals to fund their ideas.
It is important to note that GoFundMe is not created to fund business ideas rather; it is created for the purpose of funding individual and community projects.
This means that you can use GoFundMe to raise money for yourself, a loved one, a friend during crucial times or important times. GoFundMe is therefore one of the best crowdfunding sites to fund one’s education, aspiration, medical bills, funerals, volunteer programs etc.
Indiegogo is one of the first crowdfunding sites to have emerged. It was founded in 2008 by Danae Ringelmann.
Indiegogo is a very popular crowdfunding site that allows individuals or groups to solicit funds for an idea, charity or startup.
This crowdfunding platform runs on a reward-based system which means contributors will receive gifts such as a product or service offered to any one beneficiary.
Indiegogo charges a 5% fee on contributions.
MicroVentures is one of the best crowdfunding sites to fund your business ideas. This crowdfunding platform offers investments in early-stage companies through an equity-based crowdfunding method.
MicroVentures, therefore, aim to connect accredited investors with startups and businesses which are in need of funds.
Naija Fund is a Nigerian based crowdfunding platform that empowers individuals or groups to raise funds to finance their ideas.
It is easy to use the platform and it charges only 10% of the donations received.
Patreon is an online crowding platform that is concerned with empowering content creators such as bloggers, YouTubers, videographers, webcomic artists, musicians, podcasters, writers and many more categories of content creators.
With Patreon, you can build a strong community with loyal supporters who will contribute to funding your work.
Patreon charges 5% excluding processing fees on donations made.
Crowdfunder is an online crowdfunding platform that runs on equity-based crowdfunding methods.
With Crowdfunder, you can raise funds through contributions made by accredited investors.
A monthly charge of $299 is applied to have a profile with Crowdfunder. You can choose to create a non-public profile for free.
Fundanenterprise is one of the best crowdfunding platforms or websites for Nigerians. Fundanenterprise is created to empower or support Micro, Small and Medium Enterprises (MSME) in Nigeria to achieve their goals through the provision of funds.
CircleUp is an online crowdfunding platform that is focused on raising contributions to finance the building and production of consumer brands.
With the help of CircleUp, you will have access to a large number of accredited investors who are eager to fund your business idea if it is promising.
It is important to note that CircleUp runs an equity-based method of crowdfunding which implies investors would have a share in your business when it is established.