Crowdfunding is a strategy that focuses on raising smaller amounts of money from a larger collective of individuals.

While bank loans and pitching to traditional investors are still viable fundraising options, crowdfunding gives you the opportunity to solicit support from the crowd. This ‘crowd’ is a group of individuals who collectively invest in your idea to make it a reality.

Crowdfunding can also give entrepreneurs a way to validate demand for their ideas, before they enter production. By this, they let others “buy into it” with pre-orders, donations, and investments.

Many Nigerian business owners and aspiring entrepreneurs have chosen to crowdfund their business ideas through crowdfunding sites.

Below are six crowdfunding platforms in Nigeria you can use to raise funds for your business.

 

Kickstarter

Kickstarter is a good fundraising site for musicians, writers, artists and designers.

These creative project creators offer entertainments aids, and products that encourage people to give out funds.

If your creative project will receive funds successfully, Kickstarter takes five percent of the collected funds. Also there will be a three to five percent fee for the payment processors

Website: www.kickstarter.com

 

Indiegogo

This platform allows SMEs and start-ups to generate pre-sales and get a response from first adopters before manufacturing their products

Under this platform; rather than an equity crowdfunding investment, investors receive a gift for making donations.

Website: www.indiegogo.com

 

Microventures

The micro venture is an equity crowdfunding investment platform.

It is open to small businesses and start-ups.

Investors give money to businesses and in return, they receive ownership of a small portion of the businesses.

Website: www.microventures.com

 

CircleUp

CircleUp is a leading crowdfunding site in Nigeria that connects businesses in need of resources with organizations and individuals that have the resources.

It is one of the best fundraising sites for businesses that deal with producing consumer brands.

Website: www.circleup.com

 

Fund An Enterprise

Fund An Enterprise is exclusively built for fundraising activities in the form of endowments to support small to medium enterprises and start-ups in Nigeria and other countries.

Website: www.fundanenterprise.org

 

NaijaFund

NaijaFund is one of the free crowdfunding platforms in Nigeria that allows anyone to raise funds for whatever matters, including business.

Registration is free, but after donations are received, NaijaFund will deduct ten percent (10%) of the fund donated.

Website: www.naijafund.com

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