Are you looking for the best crowdfunding platforms in Nigeria to raise capital for your start-up, fund your bills, or use for other projects that require money? Then this post is just for you!
Crowdfunding is a concept that has rapidly gained popularity in recent years, especially in developing countries like Nigeria.
Crowdfunding is a process where individuals come together to support a particular cause, project, or idea by contributing money.
The funding is usually done online through a crowdfunding site, which acts as a mediator between the supporters and the individuals or organizations that require funding.
In Nigeria, crowdfunding has become a popular alternative for individuals and organizations to raise funds for their projects without relying on traditional sources of funding.
In this blog post, we will take a closer look at the crowdfunding landscape in the country, exploring the different types of crowdfunding, and the most popular crowdfunding platforms in Nigeria. Additionally, we will also show you how to get funding from these platforms and many more.
So, without further ado, let’s get started!
Crowdfunding in Nigeria: A Brief Overview
Crowdfunding is a modern financial tool that allows individuals or organizations to raise funds for their projects by collecting small amounts of money from a large number of people, typically via the Internet.
In Nigeria, this revolutionary approach has enabled numerous startups and entrepreneurs to breathe life into their business ideas, bypassing traditional funding hurdles.
Benefits of crowdfunding in Nigeria are vast. It democratizes access to finance, promotes financial inclusion, and can kickstart a flurry of innovative projects in the country.
However, the crowdfunding landscape isn’t one-size-fits-all. It’s characterized by different types such as donation-based, rewards-based, equity-based, and debt-based crowdfunding.
Each model serves different needs, providing a wide array of funding avenues for Nigerian entrepreneurs.
With that being said, let’s take a look at the best crowdfunding websites in Nigeria where you can quickly raise money.
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Top 10 Crowdfunding Platforms in Nigeria 2023
In 2023, the best crowdfunding platforms in Nigeria include:
- KickStarter – Best for Creative Projects
- NaijaFund – Best for Versatile Funding Needs in Nigeria
- QuickRaiz – Best for Quick Funding
- Fundanenterprise – Best for SMEs and Startups in Africa
- Indiegogo – Best for International Fundraising
- Airfunding – Best for Fee-Free Initial Campaigns
- CircleUp – Best for Consumer Brands
- Microventures – Best for Equity Crowdfunding
- GoFundMe – Best for Individual and Personal Causes
- Crowdfunder – Best for Connecting with Venture Capitalists
Now, let’s breakdown each of the above crowdfunding companies into details.
1. KickStarter
Kickstarter is a popular crowdfunding platform that is mainly focused on raising funds for creative projects. The platform is open to a wide range of creative projects, including art, comics, dance, design, fashion, film and video, food, games, journalism, music, photography, publishing, technology, and theatre.
Kickstarter operates on an all-or-nothing model, meaning that if a project does not reach its funding goal, no money is collected from backers (Funders). Therefore, it is better to keep your goals as realistic as possible.
Also, Kickstarter charges a 5% fee on all successfully funded projects. There will also be processing fees between 3-5% to collect the funds.
Additionally, this crowdfunding platform is user-friendly, and it has strict guidelines in place to ensure that only high-quality projects are featured.
The platform also provides support to creators throughout the process, from preparing and launching their campaigns to fulfilling rewards and bringing their projects to life.
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2. NaijaFund
NaijaFund is one of the most popular crowdfunding platforms in Nigeria. This platform helps people raise funds for several different purposes including business, bills, and many more.
Creating an account is very easy on this platform, so starting a funding campaign too is simple. Just like every other crowdfunding platform, NaijaFund also takes some money from every successfully funded project as a service fee. This is usually 10% on the platform.
3. QuickRaiz
Launched in 2018, QuickRaiz is another reliable crowdfunding platform in Nigeria, where you can go and raise money quickly to finance your business, medical bills, education, charity, community, and so on.
With Quickraiz, the money you collect goes directly to you or your benefactor. Campaign duration and deadlines can also be extended before the previous deadline.
Creating a QuickRaiz account and launching a campaign is absolutely free. However, for every successfully funded project, a 5% fee will be charged from your money before you’ll be credited.
4. Fundanenterprise
Owned and operated by the MSME Crowd Funding Foundation, Nigeria. Fundanenterprise is a donation-based crowdfunding platform, built for fundraising activities, majorly in form of grants, to support start-up, micro, small and medium-sized enterprises in Nigeria and other countries in Africa.
If you want to raise funds to finance your start-up or already operating business, Fundanenterprise is one of the best crowdfunding platforms in Nigeria and beyond you can use as it is very reliable.
5. Indiegogo
Indiegogo is a global crowdfunding platform that also works in Nigeria. This platform allows people to raise funds for a variety of projects, businesses, and causes.
Campaigns on Indiegogo range from creative projects, such as films, music albums, and art installations, to innovative technology, like smart home devices and wearable tech.
There are also campaigns focused on social and environmental causes, such as animal welfare, community development, and renewable energy.
That means you can literally get funding for any project you want on this platform. The amazing thing is that the money that will be donated is usually in dollars, which when converted to Naira, could be a lot.
Since Indiegogo is not Nigeria based crowdfunding platform, you will need to create a compelling pitch to explain why your project is worth supporting and what you plan to do with the funds you raise. Once your campaign is live, you can promote it to your network and beyond to gather support and contributions.
Unlike Kickstarter, Indiegogo offers a flexible funding model, which means that you can keep any funds you raise, even if you don’t reach your goal. This can be a good option if you have a project that you want to continue to work on, even if you don’t raise the full amount you had hoped for.
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6. AirFunding
Airfunding is another crowdfunding website in Nigeria where you can raise funds for several different projects. Airfunding has received donations from more than 130,000 supporters worldwide.
You can create a crowdfunding campaign for medical, education, business and community projects on this platform.
There are no fees to open a project in Airfunding. You can carry out crowdfunding completely free. However, funded users must be responsible for the payment of an 8% fee of the value of the received funds as a settlement fee of the Support amount.
7. CircleUp
CircleUp is a platform created to empower entrepreneurs with the funding and support that they need to thrive. This platform crowdfunding service is mainly focused on consumer brands. That means if your business falls under this category, there’s a lot to make out of this platform.
CircleUp offers lots of financing services, including a platform for connecting with accredited investors, insights from machine-learning technology, and access to special lines of credit for startups.
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8. MicroVentures
Founded in 2009, Microventures is one of the best equity crowdfunding platforms in Nigeria and beyond. Unlike a few other crowdfunding websites on this list, Microventures gathers investors around the world to invest in startups for returns.
On this platform, you can easily raise millions of dollars for your business if you meet its requirements. These requirements usually involve a review of the team, traction, market size and other factors to determine if the company will be a good fit for their platform.
Once you are qualified, the funding process starts, and it typically takes six weeks. Then after 14 days upon a successfully concluded campaign, the money will be sent to you.
9. GoFundMe
GoFundMe is another popular platform that offers crowdfunding in Nigeria. This platform is a great place to fundraise, whether you are an individual, group, or organization.
Getting funds on GoFundMe is as easy as creating an account, setting your fundraiser goal, telling your story, adding a picture or video, and start getting donations.
While the platform offers safe and secure fundraising services, it charges about a 2.9% fee per donation. That means once someone donates to support you, Gofundme take a small portion out, while you have the rest.
10. Crowdfunder
Crowdfunder is another equity crowdfunding website that enables entrepreneurs to raise funds for their businesses through financing by investors. The platform has a large network of over 12,000 venture capitalists and angel investors that are always ready to fund founders/creators’ ideas.
Unlike other Crowdfunding platforms in Nigeria that are free and charge just a small percent per donation regardless of the service you opt-in for, Crowdfunder operates on a monthly plan starting at $299 per month to create a public profile. You can also create a non-public profile for free anyways.
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Tips for a Successful Crowdfunding Campaign
Once you’ve identified the perfect fundraising platform in Nigeria, it’s time to prepare your campaign.
Success hinges on a compelling story, realistic funding goals, and effective marketing strategies. Social proof and effective campaign management also play key roles in attracting potential funders.
Fundraising Platforms in Nigeria – FAQs
Is crowdfunding allowed in Nigeria?
Yes, crowdfunding is permitted in Nigeria, governed by regulations set by the Securities and Exchange Commission (SEC).
Which fundraising platform is best for Nigeria?
The “best” crowdfunding platform varies per need, but Kickstarter, NaijaFund, and Fundanenterprise are popular choices for Nigerian entrepreneurs.
How to do crowdfunding in Nigeria?
To do crowdfunding in Nigeria, choose a suitable platform, create a compelling project proposal, set a realistic goal, and promote aggressively.
What can Nigerians use instead of GoFundMe?
Instead of GoFundMe, Nigerians can use platforms like NaijaFund, Fundanenterprise, or Airfunding, designed to support local entrepreneurial ventures.
Which fundraising site has lowest fees in Nigeria?
While fees vary, Kickstarter is known for its competitive rates among crowdfunding platforms in Nigeria.
Conclusion
Crowdfunding or fundraising platforms in Nigeria have the potential to revolutionize the way in which businesses and individuals secure funding for their ventures.
With continued growth and development, it is hoped that crowdfunding will become a widely accepted and trusted source of funding in Nigeria, providing new opportunities for entrepreneurs and small business owners to bring their ideas to life.
That is why we’ve well-researched and provided you with 10 of the best crowdfunding platforms in Nigeria, or better still, crowdfunding apps in Nigeria for you to raise funds for your idea.
Cheers!
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