Top 17+ Crowdfunding Websites for Startups in Nigeria in 2024

Crowdfunding websites for startups offers an innovative way to secure capital without relying solely on traditional financing.

Crowdfunding for startups has risen to prominence recently, particularly in developing nations such as Nigeria.

It involves individuals pooling resources to support a specific cause, project, or idea financially.

This funding typically occurs online via a crowdfunding platform, serving as an intermediary between contributors and recipients needing funds.

In Nigeria, crowdfunding platforms for startups has emerged as a favored method for individuals and organizations to secure project financing, circumventing conventional funding avenues.

In this article, we explore the top 17+ crowdfunding websites for startups in Nigeria in 2024, focusing on those that cater to African startups and the unique aspects of the crowdfunding landscape.

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What Is Crowdfunding?
How Crowdfunding Works?
Types of crowdfunding
Top 17+ Crowdfunding Websites for Startups in Nigeria in 2024
Pros and Cons of Crowdfunding
- Pros
- Cons
Why Do Software Startups Suck for Rewards-Based Crowdfunding?
How do I choose the right crowdfunding platform for my startup?
How can I increase my chances of success on a crowdfunding platform?
FAQs
Conclusion
References
Recommendations

What Is Crowdfunding?

Crowdfunding is the process of raising small amounts of money from a large number of people to fund a new business venture.

Utilizing the extensive social media and crowdfunding platform network that connects investors with entrepreneurs, potentially boosting entrepreneurship.

This then widens the investor base beyond the usual network of owners, family members, and venture capitalists.

How Crowdfunding Works?

Securing capital is crucial for the growth of any company.

While larger, established corporations may have an easier time obtaining investments or additional loans from lenders, smaller companies and startups often encounter significant hurdles.

Crowdfunding has emerged as a valuable solution in such cases.

Crowdfunding websites for startups enable entrepreneurs to gather substantial funds from a broad base of investors.

A notable example is a humorous Kickstarter campaign where someone aimed to create a new potato salad recipe, setting a modest goal of $10, yet astonishingly raising over $55,000 from 6,911 backers.

Investors have the flexibility to support a variety of projects with contributions as small as $10.

Crowdfunding platforms for startups generate income by taking a percentage of the total funds raised.

Investors have the option to choose from a multitude of projects and can invest with as little as $10.

Crowdfunding platforms earn revenue by taking a percentage of the total funds raised. For instance, Kickstarter charges a 5% fee on the total funds gathered.

Types of crowdfunding

The main types of crowdfunding are:

Rewards-based crowdfunding: Backers receive a reward, usually the product or service, in return for their contribution.
Equity-based crowdfunding: Investors receive equity or shares in the company.
Debt-based crowdfunding: Also known as peer-to-peer lending, where backers are repaid their investment with interest.
Donation-based crowdfunding: Backers donate money without expecting anything in return.

Top 17+ Crowdfunding Websites for Startups in Nigeria in 2024

Below are the top 17+ crowdfunding websites for startups in 2024:

Kickstarter
Indiegogo
GoFundMe
Fundly
NaijaFund
CrowdCube
Seedrs
Thrive Agric
StartCrunch
SMEfunding
Fint
KiaKia
I-Invest
Farmcrowdy
Fundanenterprise
KickStarter Africa
M-Changa

1. Kickstarter

Kickstarter is one of the most well-known rewards-based crowdfunding websites for startups.

It allows entrepreneurs to present their projects and seek funding from a global audience.

While it’s highly competitive, successful campaigns can gain substantial funding and visibility.

Why it’s great: Kickstarter’s large user base and popularity can provide significant exposure and funding opportunities for Nigerian startups.

Website: Kickstarter

2. Indiegogo

Indiegogo offers both rewards-based and equity crowdfunding options.

It is flexible and allows startups to choose between fixed and flexible funding goals.

Why it’s great: The platform’s flexibility in funding models makes it a versatile choice for Nigerian startups looking for tailored crowdfunding solutions.

Website: Indiegogo

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3. GoFundMe

GoFundMe is primarily known for personal causes but is also used by startups to raise funds for their projects.

It does not require an all-or-nothing approach, making it easier to keep funds raised.

Why it’s great: Its wide reach and ease of use suit Nigerian startups looking for straightforward crowdfunding options.

Website: GoFundMe

4. Fundly

Fundly one of the crowdfunding websites for startups that use and allows personal and nonprofit fundraising, which startups with social impact goals can leverage.

Why it’s excellent: Its user-friendly interface and social media integration can help Nigerian startups reach a broader audience.

Website: Fundly

5. NaijaFund

Description: NaijaFund is a Nigerian crowdfunding platform that helps local entrepreneurs and causes. It focuses on personal, business, and social projects within Nigeria.

Why it’s great: Being locally based, it understands Nigerian startups’ unique needs and challenges.

Website: NaijaFund

6. CrowdCube

CrowdCube offers equity crowdfunding, allowing startups to raise capital in exchange for equity. It targets more established startups looking to scale.

Why it’s great: It provides Nigerian startups access to a network of investors interested in equity stakes.

Website: CrowdCube

7. Seedrs

Seedrs is another equity crowdfunding platform that allows startups to raise funds by selling shares to various investors.

Why it’s great: Its focus on equity investment makes it ideal for Nigerian startups seeking long-term investors.

Website: Seedrs

8. Thrive Agric

Thrive Agric is a Nigerian platform focused on agriculture. It connects investors with farmers needing funds for their projects.

Why it’s great: Its niche focus on agriculture can benefit Nigerian agritech startups seeking sector-specific funding.

Website: Thrive Agric

9. StartCrunch

StartCrunch one of the Nigerian crowdfunding websites for startups that helps startups and entrepreneurs raise funds for various projects, including creative and tech ventures.

Why it’s great: It is tailored to the Nigerian market, making it easier for local startups to gain traction.

Website: StartCrunch

10. SMEfunding

SMEfunding is a platform that supports small and medium enterprises (SMEs) in Nigeria through crowdfunding.

Why it’s great: It focuses on SMEs, offering tailored support and funding options.

Website: SMEfunding

11. Fint

Fint is a peer-to-peer lending platform in Nigeria that connects borrowers with lenders, providing an alternative funding source for startups.

Why it’s great: Its peer-to-peer model offers Nigerian startups access to funds without traditional bank loans.

Website: Fint

12. KiaKia

KiaKia is another Nigerian peer-to-peer lending platform that provides quick loans to startups and small businesses.

Why it’s great: Fast and accessible funding options tailored to the needs of Nigerian entrepreneurs.

Website: KiaKia

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13. I-Invest

I-Invest is an investment platform that allows startups to raise funds by selling treasury bills and other investment products.

Why it’s great: It offers a unique approach to crowdfunding by leveraging financial instruments.

Website: I-Invest

14. Farmcrowdy

Farmcrowdy is a Nigerian platform that connects investors with farmers to fund agricultural projects, providing returns on investment.

Why it’s great: Its focus on agriculture and impact investing can attract investors interested in sustainable projects.

Website: Farmcr o wdy

15. Fundanenterprise

Fundanenterprise one of the crowdfunding websites for startups dedicated to supporting African entrepreneurs, including those in Nigeria.

Why it’s great: Its broad focus on African startups provides regional support and networking opportunities.

Website: Fundanenterprise

16. KickStarter Africa

Although Kickstarter Africa is not an official platform, many African startups successfully use Kickstarter to launch their projects and gain international exposure.

Why it’s great: Global reach and established credibility can help Nigerian startups gain significant visibility and funding.

Website: Kickstarter Africa

17. M-Changa

M-Changa is an African mobile fundraising platform that allows startups to raise funds through mobile money and other digital means.

Why it’s great: Its mobile-first approach is well-suited to the African market, including Nigeria.

Website: M-Changa

Pros and Cons of Crowdfunding

Pros

The primary benefit of crowdfunding websites for startups or individuals is the access it provides to a broader and more varied pool of investors or backers.

Given the widespread use of social media, crowdfunding platforms for startups serve as an excellent resource for businesses and individuals to expand their audience and secure necessary funding.

Equity-based crowdfunding is increasingly favored as it enables start-up companies to raise funds without relinquishing control to venture capital investors.

Additionally, it sometimes allows investors to acquire an equity stake in the business.

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Cons

Some potential drawbacks of crowdfunding are the risk of harming your personal or company’s reputation.

The costs linked to the crowdfunding platform, and the possibility that if the funding target is not met, the pledged money will be refunded to the backers, resulting in no funds being raised.

Why Do Software Startups Suck for Rewards-Based Crowdfunding?

Startups often face rewards-based crowdfunding challenges due to their products’ intangible nature.

Potential backers usually prefer tangible rewards they can see and use, making it harder for software projects to attract funding than physical products.

Additionally, software development timelines can be unpredictable, leading to delays that frustrate backers.

These factors make it crucial for software startups to communicate their value proposition, development process, and potential impact to succeed on rewards-based crowdfunding platforms.

How do I choose the right crowdfunding platform for my startup?

Consider the following factors when choosing a crowdfunding website for startups:

Type of crowdfunding: Decide whether you need rewards-based, equity-based, debt-based, or donation-based crowdfunding.
Platform fees: Compare the fees charged by different platforms.
Audience reach: Choose a platform with a large and relevant audience for your project.
Support and resources: Look for platforms that offer support, resources, and tools to help you succeed.
Success stories: Review the platform’s track record and success stories of similar projects.

Also read – Top 15 Market Intelligence Tools & Software for Startups

How can I increase my chances of success on a crowdfunding platform?

To increase your chances of success:

Plan thoroughly: Develop a comprehensive campaign strategy.
Create a compelling story: Tell a compelling story about your startup and project.
Engage your audience: Use social media and other channels to engage with potential backers.
Offer attractive rewards: For rewards-based crowdfunding, offer appealing and reasonable rewards.
Update regularly: Keep backers informed with regular updates on your progress.

FAQs

What is crowdfunding?

Crowdfunding is raising capital for a project or business by soliciting small amounts of money from many people, typically via the Internet.

What are the benefits of crowdfunding for startups?

Crowdfunding offers numerous benefits, such as access to capital without the need for traditional loans, validation and market testing for your product or service, increased visibility and marketing, building a community of supporters, and valuable feedback from potential customers.

What are the best crowdfunding platforms for startups in Nigeria?

Some of the best crowdfunding platforms for startups in Nigeria include Kickstarter, Indiegogo, NaijaFund, Fundly, StartCrunch, and SMEfunding.

What are the challenges of crowdfunding for software startups?

Software startups may struggle with rewards-based crowdfunding due to the intangible nature of their products, making it harder to attract backers.

What legal and regulatory considerations should I be aware of?

Ensure compliance with local laws and regulations regarding crowdfunding, including securities regulations for equity-based crowdfunding.

Can international backers support Nigerian crowdfunding campaigns?

Yes, international backers can support Nigerian crowdfunding campaigns on global platforms like Kickstarter and Indiegogo.

What happens if I don’t reach my crowdfunding goal?

The outcome depends on the platform and funding model. Some platforms, like Kickstarter, use an all-or-nothing model where you only receive funds if you meet your goal.

Conclusion

Crowdfunding for startups in Nigeria offers an alternative to traditional financing methods, providing access to a wide range of investors and supporters.

The crowdfunding platforms for startups listed above cater to various needs, from rewards-based and equity crowdfunding to niche sectors like agriculture.

Using these platforms, Nigerian startups can secure the funding needed to turn their innovative ideas into successful ventures.

Whether looking for the best crowdfunding sites for startups or exploring why software startups face unique challenges, these platforms provide the necessary resources and opportunities to thrive in the competitive startup ecosystem.