One of the problems confronting small business owners and entrepreneurs in Nigeria is being able to raise the needed capital to fund, start and grow their ventures profitably.Getting money from commercial banks is always difficult and angel/private investors will not want risk their money on startups that are yet to gain traction.
This is when crowdfunding sites comes to the rescue, quickly, what is Crowdfunding?
Crowdfunding is when many investors pool their resources together and invest in a business and this is usually a small capital from each of these investors. Crowdfunding has been made easy with crowdfunding websites and in this article, we will look 10 crowdfunding websites for Nigerian small businesses.
The most popular crowdfunding platform is Kickstarter. Over $4.1 billion has been raised through Kickstarter, which has supported over 156,000 projects.
On Kickstarter, you can support any creative project you have. You can use our platform to fundraise whether you’re a filmmaker, programmer, musician, entrepreneur, or anything else creative, as long as your idea is good.
Kickstarter primarily encourages reward-based funding. Supporters of the project are rewarded with t-shirts, hats, and other items. The stronger the incentive, the more money a supporter pledges.
It’s worth noting that Kickstarter operates on an all-or-nothing basis. This implies that if you do not raise enough money to start the project by the end of the fundraising, you will not receive any of the funds; instead, they will be returned to the donors. However, if you meet the required amount, you will receive it.
Kickstarter charges a 5% fee, which does not include payment processing.
Crowdfunder is a platform that allows entrepreneurs to raise funds from a group of certified investors.
They offer a wide network of over 12,000 venture capitalists and angel investors to whom you can pitch your business ideas for funding.
To build a public profile on Crowdfunder, there is a monthly subscription starting at $299 per month. You can make a private profile for free.
NaijaFund is a crowdfunding platform headquartered in Nigeria that helps people gather funds for a variety of purposes, including business.
You only need to create an account. It’s simple to do with your social media platforms.
The Naija Fund deducts 10% of all donations received.
GoFundMe is a crowdfunding platform dedicated to assisting individuals and organizations in raising finances. GoFunMe, unlike the other platforms on this list, is not ideal for commercial fundraising.
It’s best for charitable purposes, community endeavors, and personal interests. Omoyele Sowore, the proprietor of Sahara reporters and a Nigerian blogger, used the GoFunMe website to gather cash for his presidential campaign in 2019.
You can utilize this platform to seek donations if your proposal is community-centered, altruistic, or if you are in a circumstance that requires assistance.
GoFundMe does not charge a fee to use the platform, however there is a 2.9 percent transaction fee.
MicroVentures is a venture capital and equity crowdfunding investment platform that combines the best of both worlds. MicroVentures has been assisting firms (including Facebook) in obtaining funding from approved and non-accredited investors since 2009.
Before choosing a firm to promote on its site, MicroVentures considers the applicant’s idea, team, traction, market size, and other considerations. According to the company’s website, the funding procedure takes six weeks after that.
Indiegogo is a global crowdfunding platform that allows individuals from all over the world to fund projects and ideas that they care about. Individuals and startups can use the site to generate pre-sales and gather feedback from early adopters before they build their items.
Indiegogo is a financing platform that also serves as a marketplace for innovative products. Since its establishment in 2008, it has assisted entrepreneurs from all around the world in raising over $1 billion for over 650,000 projects.
Fundanenterprise provides a fund raising platform to fund creative projects and businesses in Nigeria. Anyone seeking to raise funds for everything from films, games, and music to art, design, medical expenses, school fees, and technology can start a project on the platform. All fees are based on and applied to the amount of funds raised.
Peer-to-peer (P2P) lending is a method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary. Peer-to-peer lending removes the middleman from the process, but it also involves more time, effort and risk than the general brick-and-mortar lending scenarios.
Quickraiz” is an online crowdfunding and fundraising platform that allows both individuals and organizations raise funds easily and securely for causes that matter
Using Quickraiz as a go-to platform for personal fundraising by individuals, schools, Alumni and crowdfunding by NGOs/Charities, Health centres/Hospitlas, sports centres and communities, we aim at connecting fundraisers with potential donors.
Another popular crowdfunding platform in Nigeria is CircleUp. It assists you in making connections with organizations and people who have resources.
As a result, you will be able to develop unique initiatives that will help you solve unmet needs in your community.
CircleUp is one of the most effective fundraising platforms for companies that create consumer brands.
GoFundMe is the world’s number 1 fundraising platform for crowdfunding. It is available in nearly every nation of the world including and you can raise funds not just fir businesses but for any other ideas and initiatives
Online Lending Platforms For Nigerian Small Businesses