Crowdfunding Websites, also known as Fundraising Websites, allow people to raise funds for many people planning a project or business for their benefit, Projects, or companies.
Group fundraising websites have become very popular, raising billions of dollars each year. Many great companies and ideas are funded by crowdfunding.
Raising money to start a project, a job, or calling it a job is challenging, especially in Nigeria and some various African countries where access to finance is complicated. Requesting a loan can sometimes be a nightmare. Because it’s usually a long list of requirements that you might not be able to meet.
Other options, such as investor selection and venture capital, are excellent but difficult to access. Most of the time, you may need connections so that the UPS can hear you. Some capitalists may not even look at you, especially when you have no experience.
Table of Contents
- How Does Crowdfunding Websites Work?
- What are the Advantages of a Crowdfunding Site?
- Best Crowdfunding Websites in Nigeria
How Does Crowdfunding Websites Work?
Crowdfunding websites works this way: a person seeking funds to start a business submits a project to a crowdfunding website. The required amount of money to start the project is indicated and the end date of the fundraising.
The project is seen by different people and those who feel it is worth donating for its support.
You might be meditating about why someone would want to support a project they see on a website. There are several reasons:
- People want to be a part of a big idea that can rule the world or a region.
- They have the opportunity to be among the first to try or see the product.
- Project creators offer incentives like custom t-shirts, hats, etc., depending on the amount donated.
- Subscribers can have access to meetings with the founders and attend their events.
- If they make a large donation, they have the opportunity to participate in the business.
- They receive loans that can have a significant impact on their portfolio.
- Some people are dear; they want to help make their dreams come true!
What are the Advantages of a Crowdfunding Site?
The group’s funding sites keep a percentage of the sums collected. This percentage is generally 5% or less. With the participation of escrow services, it could be increased to 10%.
The rest goes to the creator of the project. Over $34 billion was raised through crowdfunding websites in 2015!
There are different crowdfunding websites with different rules and fees. But the structure is essentially the same. Submit your project, and set a fundraising goal and deadline. You should also actively run a campaign to support your friends, family, and social media.
Best Crowdfunding Websites in Nigeria
Here are the main crowdfunding websites in Nigeria:
Kickstarter is the most popular crowdfunding site. Kickstarter has funded more than 156,000 projects, with more than $4.1 billion raised.
Whatever your creative ideas, you can fundraise on Kickstarter. Whether you are a filmmaker, music artist, programmer, entrepreneur, or visionary, as long as your project is fantastic, you can fundraise with this platform.
Kickstarter primarily supports prize-based fundraising. People who support the project are offered stimulus such as t-shirts, hats, etc. The more money a fan promises, the better the incentive.
It is good to note that the Kickstarter system works all or nothing. This means that if you do not receive the cash to start the project at the end of the fundraiser, you will not receive the money; it will be returned to the sponsors. But if you reach the required amount, you will get it.
Kickstarters charges a 5% fee, which excludes payment processing. To check out more information, click here.
Indiegogo is a viral data fundraising site similar to Kickstarter, but with some significant differences. This platform helps companies, creatives, NGOs, and others to raise funds to support their projects.
A surprising option on Indiegogo is the ability to choose a fixed or flexible funding target. Fixed funding is like Kickstarter or all or nothing – if you don’t raise enough money to start a project at the end of the fundraiser, you get nothing. But a flexible funding option allows you to secure a fund whether or not it meets your objective.
With Indiegogo InDemand, you can still raise funds after your crowdfunding websites campaign is over. There is also the possibility of presenting your project to investors in exchange for an investment.
Indiegogo charges a 5% fee, which does not include payment processing. To check out more information, click here.
GoFundMe is a crowdfunding website that focuses on helping people and fundraising causes. Unlike another crowdfunding platform on the list, GoFunMe is not suitable for corporate fundraising.
It is best suited for goals, community projects, and individual projects. For example, the Owner of Sahara Reporters, Nigerian blogger Omoyele Sowore, used the GoFunMe websites to raise capital for his presidential bid in the 2019 elections.
If your idea is community-based, philanthropic in nature, or if you are in a situation that needs support, you can use this fundraising platform.
GoFundMe does not charge a fee for using the platform, but a transaction fee of 2.9% + $30 per donation may apply.
To check out more information, click here.
Crowdfunder is a capital fundraising website that allows entrepreneurs to raise funds from a group of authorized investors.
They have an extensive network of over 12,000 equity investors and angels to sell your fundraising ideas.
Crowdfunder has a monthly fee of $299 per month to create a public profile. You can create a non-public profile for free.
To check out more information, click here.
Patreon is a crowdfunding website that provides online creators such as bloggers, music artists, YouTubers, etc. It allows you to collect cash from your users.
If you are an internet creator with Patreon, you can build a strong community of loyal and dedicated followers to help fund your work.
Patreon’s fees vary by 5%, not including processing fees. To check out more information, click here.
Crowdcube is a crowdfunding website. This is hard to accept because there are only a few campaigns on the site. But when they do take you, you have a good chance of securing funding.
Businesses generally accept them in the UK, Spain, and Ireland. But if you are from Nigeria and other countries, they can still accept. You will need to contact your business development team and tell them where you are, how your business is structured, and how much you want to raise.
They charge a 7% fee. To check out more information, click here.
Crowdfunding websites are a great way to raise money for your ideas. If you have a good idea and don’t have the funds, you can take action using these fundraising platforms instead of giving up.