Crowdfunding in Nigeria: What you need to know
WHAT IS CROWDFUNDING?
Crowdfunding is usually an alternative means of raising funds in any country. Unfortunately, many Nigerians do not know much about it. A little definition and meaning of crowdfunding before we move into what you need to know about crowdfunding and its benefits as a donations platform in Nigeria.

In simple words; crowdfunding is a means by which large number of people donate to fund a startup, medical case or stabilize a business.
It is like a social form of IPO (Initial Public Offering). But in the traditional IPO, a business is brought to the public in order to raise funds while selling part of the business to the public. These steps are also applicable in crowdfunding, which simply means you solicit for funds for your business, difficulties or even a personal idea majorly on the internet.
Unlike IPO, in most crowdfunding campaigns, people who donate the funds don’t get any part of your business, idea or problem. They only donate to help you realize your objective.
THINGS TO NOTE:
The concept of crowdfunding in Nigeria is very easy and open which gives hope of gathering money. You tend to believe more when you hear about the successful crowdfunding story in Nigeria, where people were able to help raise huge amounts within short period of time for a medical financial need with the help of crowdfunding platforms like FundMeNG, the the GoFundMe of Nigeria.
There are various aspects of crowdfunding, ranging from medicals to farming, projects and business crowdfunding to mention a few. It all depends on the particular financial assistance required.
Types of Crowdfunding:
Crowdfunding is normally categorized based on the particular financial assistance it is to be used for.
These categories include:
Donations Crowdfunding: Majorly the most common, and it is a platform regarded as mere donations website with no expectation of returns/rewards to the contributors (donors).This is usually seen in situations whereby funds are raised for charitable causes, help for medical bills e.g. a medical platform like FundMeNG (fundmeng.com the GoFundMe alternative in Nigeria), a donations website where several medical financial assistance campaigns are highlighted to help those in need of medical bills at a particular time.
Reward based Crowdfunding: here funds are donated in exchange for a product or services.
Equity- based Crowdfunding: Here the funds are provided in return for an equity stake (shares) in the project/ company.
Lending-based/debt based Crowdfunding which constitutes direct lending with the donors as lender and the project owner as the borrower.

Another crowdfunding site is https://gifter.com.ng