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Tips - August 11, 2022

Starting a Business? Here are 5 Crowdfunding Sites to Raise Capital in Nigeria

Raising capital is one of the problems both new and existing businesses face in Nigeria. This, in turn, has seen to the founding of platforms such as crowdfunding that help businesses raise capital in Nigeria. Its impact on business has seen its upsurge in the Nigerian system.

Invariably, it reduces the pressure the bottleneck system in the commercial banks and some private investors have on people with business ideas. Though some of the crowdfunding is in small capital, the funds have gone a long way to actualising some business ideas in Nigeria.

Here are some crowdfunding sites you can use to raise capital for your business in Nigeria.

Kickstarter

crowdfunding Nigeria
Source: Nate Riggs

Kickstarter is one of the most used crowdfunding platforms, especially for creative-related businesses. The platform has raised more than $6.1 billion for over 224,000 projects. Entrepreneurs such as fashion designers, musicians, curators, writers, programmers and explorers use the platform to execute their projects.

It, however, is based on an all-or-nothing policy. You must ensure to generate all the needed funds for your business before the closure of fundraising. Failure to do so will be forfeiture of the funds you have raised back to the donors.

If your business or project is funded, Kickstarter applies a 5% on the funds raised, which excludes the payment processing.

Indiegogo

crowdfunding Nigeria
Source: Investopedia

This is an internationally recognised crowdfunding platform. The platform funds people who need capital to execute their business ideas around the globe. The platform is also a business hub for innovative products.

Indiegogo currently serves 223 countries and has raised more than $1 billion for over 650,000 projects.

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MicroVentures

Source: The Hustle Story

MicroVentures is one of the oldest crowdfunding platforms and has seen the funding of many businesses. Apart from being a crowdfunding space, MicroVenturing is also a venture capital company.

Before supporting an idea, MicroVentures assesses and analyses facts such as the feasibility of the business idea, the competency of the team, and market availability.

From the website’s frequently asked questions (FAQ), “ It typically takes six weeks from the time of the application submission to final approval and the actual funding date. Once fully funded, you should expect to receive your funds within two weeks.” The funding includes both accredited and non-accredited investors.

NaijaFund

Source: LoanSpot

NaijaFund is a crowdfunding platform that allows people to leverage social media to fund anything. This includes business ideas. The platform enables users to connect their accounts with social media networks where they can request funds for their business idea or any other venture from friends, family, and the public. The platform, however, receives 10% of every fund you get.

CircleUp

Source: CircleUp

This platform is considered one of the best equity crowdfunding platforms. It is best for a business idea that is consumer based. For this type of idea, the platform offers services such as connecting with accredited investors, insights from machine-learning technology, and access to special lines of credit for startups.

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