Crowdfunding Platforms for Businesses

Money is the lifeline of any business. Whether you’re launching a startup, expanding operations, or introducing a new product, securing funding is one of the biggest hurdles entrepreneurs face. If traditional financing options like bank loans and venture capital aren’t accessible, crowdfunding platforms for businesses offer an alternative way to raise money.

With crowdfunding, businesses can connect directly with customers, supporters, and investors who believe in their vision. Instead of relying on a single investor, entrepreneurs can secure funds from multiple backers, each contributing a small amount. The best crowdfunding platforms for businesses not only help you raise capital but also serve as powerful marketing tools, generating buzz around your brand.

In this guide, you’ll learn everything you need to know about crowdfunding for businesses, including how it works, how to choose the right platform, and the steps to launching a successful campaign. We’ll also explore the best crowdfunding platforms for businesses, including those tailored for Nigerian entrepreneurs.

How Crowdfunding Works in Business

Crowdfunding is changing the way businesses raise money. Instead of chasing banks or private investors, entrepreneurs can now pitch their ideas directly to the public—customers, supporters, and even strangers who believe in their vision.

Think of it as building a community-backed investment. Instead of relying on one large investor, businesses raise capital through small contributions from many people via online platforms. This funding model is particularly useful for startups, small businesses, and creative projects looking to validate their ideas, grow their audience, and secure funds all at once.

Different Crowdfunding Models for Businesses

Not all crowdfunding platforms work the same way. Some allow businesses to pre-sell products, while others offer investors a stake in the company. Here’s a breakdown of the major crowdfunding models:

1. Reward-Based Crowdfunding

This is the most popular type, where backers contribute money in exchange for a product, service, or exclusive perk. It’s ideal for product-based businesses and startups looking to test market demand before launching.

Example: A tech startup could use crowdfunding to fund a new smartwatch, offering early backers a discounted version before the product hits the market.

2. Equity Crowdfunding

Equity crowdfunding allows businesses to sell shares in their company to investors. Unlike reward-based crowdfunding, backers become part-owners of the business, sharing in its future success or failure.

Example: A fintech startup looking to scale could attract hundreds of micro-investors who each buy a small percentage of the company’s shares.

3. Debt Crowdfunding (Peer-to-Peer Lending)

Also known as P2P lending, this model allows businesses to borrow money from individual investors instead of banks. The business then repays the loan with interest over a fixed period.

Example: A manufacturing company needing N5,000,000 for equipment could secure the funds from multiple lenders instead of applying for a traditional loan.

4. Donation-Based Crowdfunding

This works best for social enterprises, non-profits, or businesses with a strong community focus. Here, people donate money without expecting anything in return, purely to support a cause they believe in.

Example: A Nigerian agribusiness creating sustainable farming projects could raise funds through donation-based crowdfunding to expand operations and train local farmers.

Why More Businesses Are Turning to Crowdfunding

Crowdfunding platforms for businesses offer more than just money—they provide validation, visibility, and a built-in community of supporters. Here’s why businesses are choosing crowdfunding over traditional financing:

• No bank restrictions – No collateral, no rigid loan terms. Just a great idea and the ability to attract backers.
• Market testing – If people are willing to fund your idea, it proves demand exists.
• Brand exposure – A viral crowdfunding campaign can turn a small business into a household name.
• Customer loyalty – Early backers feel invested in your success, becoming long-term customers.

For many entrepreneurs, crowdfunding isn’t just a funding method, it’s a launch strategy that builds awareness, attracts investors, and validates ideas all at once.

How to Choose the Best Crowdfunding Platforms for Businesses

Choosing the right crowdfunding platform for businesses is just as important as the campaign itself. Each platform has its own rules, audience, and funding model, and picking the wrong one could mean wasted effort and zero funds raised.

Some platforms cater to tech startups, while others focus on creative projects, social impact ventures, or equity-based funding. So, how do you find the best fit for your business? Here’s what to consider:

1. What Kind of Funding Does Your Business Need?

Not all crowdfunding platforms work the same way. The first step is knowing how you want to raise money:

• Pre-selling a product or service? → Choose a reward-based crowdfunding platform.
• Offering shares in your company? → Go for equity crowdfunding.
• Borrowing money from backers? → A debt crowdfunding or peer-to-peer lending platform is best.
• Raising funds with no strings attached? → Use a donation-based crowdfunding platform.

Picking a platform that matches your funding model ensures you attract the right backers and increase your chances of success.

2. Does the Platform’s Audience Match Your Business?

Some platforms specialize in tech products, others in art, music, social impact, or general startups. Find out where businesses like yours have succeeded before.

• If you’re launching a physical product or gadget, reward-based platforms work best.
• If you need investors who want long-term returns, equity crowdfunding is the way to go.
• If you have a mission-driven business, donation-based platforms might attract the right supporters.

Knowing your audience’s expectations helps you craft a campaign that appeals to them.

3. Understand the Platform’s Fees and Costs

Crowdfunding isn’t free. Most platforms charge a commission on the funds you raise, usually between 3% and 10%, plus payment processing fees. Some platforms only release funds if you hit your full goal, while others let you keep whatever you raise.

Here’s what to check:

• Platform fees – What percentage of your funds will the platform take?
• Payment processing fees – Some platforms charge additional transaction costs.
• Funding rules – Does the platform allow partial payouts, or is it all-or-nothing?

Understanding the true cost of crowdfunding helps you set a realistic funding goal that accounts for deductions.

4. Does the Platform Support Your Country and Business Type?

Not all crowdfunding platforms work in every country. If you’re in Nigeria or another African country, ensure the platform accepts local businesses and payment methods. Some platforms only support businesses registered in the U.S., U.K., or Europe, while others are global.

Also, some platforms specialize in certain industries. If you’re a tech startup, a creative business, or a social enterprise, look for platforms that already have successful campaigns in your niche.

5. Are There Legal or Regulatory Requirements?

For equity crowdfunding, many platforms require compliance with financial regulations. If you’re offering shares in your business, you may need to:

• Register with regulatory authorities.
• Disclose financial records to potential investors.
• Follow investment limits based on platform rules.

Understanding legal obligations upfront prevents issues down the line.

Steps to Launch a Successful Crowdfunding Campaign

Many entrepreneurs believe that simply creating a campaign will attract backers. The truth is, crowdfunding requires strategy, preparation, and promotion. A well-planned campaign can generate excitement, secure funding, and build long-term supporters. Here’s how to do it right.

1. Set a Clear and Realistic Funding Goal

Your funding goal should be justified and achievable. Investors want to know exactly how much you need and what it will be used for. A breakdown of expenses builds trust and encourages contributions. Setting an overly ambitious goal without a clear plan can hurt your chances of success.

2. Craft a Compelling Campaign Story

People don’t just invest in ideas—they invest in people and purpose. Your pitch should be clear, engaging, and emotionally compelling. Tell your story, explain the problem you’re solving, and show why your business matters. Campaigns with a strong emotional appeal are far more likely to attract backers.

3. Offer Meaningful Incentives

If your campaign involves reward-based crowdfunding, think about how to make your offer irresistible. Early bird discounts, limited editions, and exclusive perks can increase contributions. The more value you offer backers, the more likely they are to support your campaign.

4. Promote Your Campaign Aggressively

Crowdfunding success depends on visibility. Simply launching a campaign isn’t enough—you need to actively promote it. Leverage social media, email marketing, and influencer partnerships to reach a wider audience. Getting press coverage can also boost credibility and attract potential investors.

5. Engage with Backers and Keep Them Updated

Crowdfunding is a two-way street. Engaging with backers by responding to their questions, posting updates, and showing appreciation builds trust and loyalty. The more involved your supporters feel, the more likely they are to spread the word and back future projects.

15 Best Crowdfunding Platforms for Businesses

Choosing the right crowdfunding platform for businesses is critical to raising funds successfully. Each platform has unique features, funding models, and target industries. Some focus on startups, while others cater to social enterprises, creative businesses, or small ventures. Below is a detailed breakdown of the best global and Nigerian crowdfunding platforms, their funding models, and what makes them stand out.

1. M-Changa

Best for: African businesses, social enterprises, and community-driven projects.
Funding Model: Donation-based and peer-to-peer lending.
Transaction Fees: Variable, depending on mobile money providers.

M-Changa is Africa’s largest mobile-based crowdfunding platform, making it an excellent option for businesses and entrepreneurs who need financial support from a broad community. Unlike traditional crowdfunding sites that require credit card transactions, M-Changa allows fund collection via mobile money services like M-Pesa, Airtel Money, and bank transfers, making it highly accessible in Africa.

To start a fundraising campaign on M-Changa, businesses register on the platform, create a campaign explaining their funding needs, and share it with potential backers via SMS, social media, and other digital channels. The platform provides real-time donation tracking and automatic notifications to encourage continued engagement from supporters.

While M-Changa is highly effective for community-driven businesses and social entrepreneurs, it may not be suitable for tech startups or high-growth companies seeking large-scale investment. It is mainly used for donation-based fundraising rather than investment-backed business financing.

2. Giving.ng

Best for: Nigerian startups, SMEs, and social impact businesses.
Funding Model: Donation-based.
Transaction Fees: No platform fees; only payment processing charges apply.

Giving.ng is a Nigerian crowdfunding platform designed to support entrepreneurs and organizations working on impactful projects. Unlike many international crowdfunding platforms that charge high fees, Giving.ng allows entrepreneurs to raise funds with zero platform charges, ensuring that businesses keep most of the money they raise.

The platform works by allowing entrepreneurs to create campaigns outlining their project details, funding goals, and expected impact. Backers contribute money through secure online payments, and successful campaigns may also receive additional grants from Sterling Bank, one of Giving.ng’s key partners.

While this platform is highly beneficial for startups in agriculture, renewable energy, education, and healthcare, businesses with purely commercial interests may struggle to attract backers unless they can demonstrate a strong social impact.

3. Fundanenterprise

Best for: Nigerian startups and SMEs.
Funding Model: Reward-based and equity crowdfunding.
Transaction Fees: Varies depending on funding type.

Fundanenterprise is a Nigerian crowdfunding platform that connects business owners with investors and backers who are willing to fund innovative startups. The platform operates using both reward-based crowdfunding and equity crowdfunding.

Entrepreneurs start by creating a campaign detailing their business idea, financial requirements, and what they offer in return. Backers can then contribute based on the potential benefits of the business. Once the campaign ends, businesses either receive the full funds if they meet their target or a percentage if using flexible funding.

This platform is particularly useful for Nigerian tech startups, small businesses, and social enterprises that may not qualify for traditional bank loans. However, because Fundanenterprise focuses on business viability and investor returns, entrepreneurs must have a solid business plan and demonstrate growth potential to attract funding.

4. Crowdfunder

Best for: Small businesses and early-stage startups seeking investment.
Funding Model: Equity-based.
Transaction Fees: Typically 5-8% of funds raised.

Crowdfunder is an equity crowdfunding platform that connects entrepreneurs with a network of accredited investors. Unlike donation-based crowdfunding, this platform allows businesses to sell shares in their company in exchange for capital.

To raise funds on Crowdfunder, businesses must create an investment proposal, outlining their company valuation, business model, and potential return on investment. Investors then review proposals and decide whether to invest. Unlike venture capital funding, equity crowdfunding allows startups to raise smaller amounts from multiple investors instead of relying on a single source.

This platform is ideal for businesses in technology, fintech, and other scalable industries. However, startups using Crowdfunder must be prepared for rigorous due diligence, legal requirements, and shareholder obligations.

5. Imeela

Best for: Nigerian businesses and community-driven projects.
Funding Model: Donation-based.
Transaction Fees: Varies based on transaction type.

Imeela is a Nigerian crowdfunding platform designed for entrepreneurs, students, and individuals looking to raise money for business or personal projects. It operates on a donation-based funding model, meaning backers contribute money without expecting financial returns.

To launch a campaign on Imeela, businesses must set up a profile, outline their funding needs, and share their campaign through social media, email, and other digital channels. The platform provides fundraising analytics, helping users track contributions and adjust their marketing efforts.

While Imeela is excellent for small businesses and social projects, it is less suitable for high-growth startups that require large-scale investment. However, it remains one of the best options for Nigerian entrepreneurs looking for accessible, community-driven funding.

6. BackerKit

Best for: Businesses managing post-campaign rewards and fulfillment.
Funding Model: Post-campaign management tool.
Transaction Fees: Based on service usage.

BackerKit is not a traditional crowdfunding platform but a support tool for businesses that have already raised funds through platforms like Kickstarter or Indiegogo. Once a crowdfunding campaign is successful, businesses often struggle with tracking orders, collecting backer information, and fulfilling rewards. BackerKit solves this problem by providing a seamless post-campaign management system.

Entrepreneurs use BackerKit to manage pre-orders, send surveys to backers, handle shipping logistics, and track product fulfillment. It integrates with major crowdfunding platforms, making it a must-have tool for businesses launching physical products.

Although BackerKit does not help businesses raise initial funds, it is invaluable for startups looking to ensure smooth post-campaign operations and customer satisfaction.

7. StartEngine

Best for: High-growth startups and small businesses seeking investment.
Funding Model: Equity crowdfunding.
Transaction Fees: Varies based on investment structure.

StartEngine is one of the largest equity crowdfunding platforms, allowing startups to sell shares to thousands of individual investors. Unlike donation-based crowdfunding, businesses using StartEngine exchange equity for capital, making it ideal for startups looking for long-term investors rather than short-term contributors.

To raise funds on StartEngine, entrepreneurs create an investment proposal outlining their company’s financials, business model, and projected growth. Once approved, they can publicly offer shares, attracting investors from across the world. The platform’s widespread investor network gives businesses access to significant funding opportunities without relying on venture capitalists or bank loans.

However, startups using StartEngine must comply with financial regulations, provide detailed disclosures, and maintain investor relations, making it more suited for businesses with strong growth potential and scalability.

8. WeFunder

Best for: Startups and early-stage businesses looking for small investors.
Funding Model: Equity crowdfunding.
Transaction Fees: 7.5% of total funds raised.

WeFunder is an equity crowdfunding platform that allows both accredited and non-accredited investors to invest in businesses, making it one of the most inclusive crowdfunding platforms for businesses. Unlike traditional venture capital, which limits funding to a handful of wealthy investors, WeFunder enables startups to raise capital from hundreds or even thousands of smaller investors.

Businesses launch campaigns by pitching their ideas, setting a funding goal, and offering equity stakes in their company. Investors then contribute funds, and once the campaign ends, the business receives its funding in exchange for ownership shares. This model is ideal for startups that need capital but don’t want to rely on a single large investor.

However, raising funds through WeFunder requires businesses to undergo financial reviews, provide investor updates, and manage shareholder expectations, making it better suited for companies with solid business plans and long-term growth potential.

9. MicroVentures

Best for: Startups seeking venture capital-style investment.
Funding Model: Equity crowdfunding and venture capital investment.
Transaction Fees: 5% on funds raised.

MicroVentures is a hybrid crowdfunding platform that combines venture capital with crowdfunding, making it unique among equity-based platforms. It caters to high-growth startups looking to attract both individual investors and institutional backers.

Unlike most crowdfunding platforms, MicroVentures carefully vets businesses before allowing them to list, ensuring only high-quality investment opportunities are available. This makes it a preferred platform for tech startups, fintech companies, and other high-growth industries.

Entrepreneurs using MicroVentures can raise funds from both smaller individual investors and larger venture capital firms, providing more flexibility in securing capital. However, due to its strict screening process and investor-focused approach, it is not suitable for small businesses or early-stage startups without a clear growth strategy and solid business fundamentals.

10. EquityNet

Best for: Business owners looking for structured investment opportunities.
Funding Model: Equity crowdfunding.
Transaction Fees: 5% success fee.

EquityNet is a business-focused crowdfunding platform that provides structured financial tools to help entrepreneurs raise capital from investors. Unlike many equity crowdfunding platforms that simply list businesses, EquityNet offers advanced financial planning tools to help entrepreneurs create detailed financial projections, risk analyses, and investor proposals.

To raise funds, businesses must submit a detailed business plan, which is then analyzed using EquityNet’s proprietary tools. Investors review these analyses before deciding whether to invest. This data-driven approach makes it easier for businesses to secure serious investors who are looking for well-structured deals.

EquityNet is best suited for established businesses with clear financial projections rather than early-stage startups or small enterprises with limited data.

11. Zidisha

Best for: Small businesses in developing countries.
Funding Model: Peer-to-peer lending.
Transaction Fees: No interest loans, but optional tips apply.

Zidisha is a peer-to-peer lending platform that connects small business owners in developing countries with individual lenders who offer interest-free microloans. Unlike traditional crowdfunding, Zidisha allows businesses to borrow directly from individuals rather than institutions, making it an excellent option for entrepreneurs in low-income regions who lack access to traditional financing.

To apply for funding, businesses submit a loan request detailing how much they need and what they will use it for. Lenders from around the world contribute in small amounts, and once the funding goal is met, the business receives the loan and repays it over time. Unlike bank loans, Zidisha loans do not require high credit scores or collateral, making them accessible for small businesses.

However, Zidisha loans are typically small-scale, meaning they may not be suitable for high-capital startups or businesses looking for large investments.

12. Kiva

Best for: Small businesses in underserved markets.
Funding Model: Microloans.
Transaction Fees: 0% interest loans.

Kiva is a nonprofit crowdfunding platform that provides 0% interest microloans to small businesses worldwide. It works by connecting entrepreneurs in developing regions with individual lenders who contribute small amounts to collectively fund business projects.

Unlike traditional loans, Kiva allows businesses to access capital without paying interest, making it an attractive option for entrepreneurs who need affordable financing options. Businesses create a campaign, outline their funding needs, and once funded, they repay the loan gradually.

However, because Kiva operates as a social impact platform, it is better suited for small, community-driven businesses rather than high-growth startups looking for large-scale investment.

13. Fundly

Best for: Small businesses, social enterprises, and personal fundraising.
Funding Model: Donation-based.
Transaction Fees: 4.9% platform fee plus payment processing fees.

Fundly is a flexible crowdfunding platform that allows businesses, nonprofits, and individuals to raise funds through donations without the all-or-nothing model. Unlike other crowdfunding platforms that require campaigns to reach their full goal before receiving funds, Fundly lets businesses keep whatever they raise, regardless of whether they hit their target.

Setting up a campaign on Fundly is straightforward—businesses create a campaign page, add images and videos, and share their story to attract backers. The platform offers built-in social media sharing tools, making it easy to spread the word. Fundly is ideal for small businesses, community-driven ventures, and personal fundraising efforts, but it may not be the best option for startups looking for investment-backed funding or large capital.

14. Uprise.Africa

Best for: African startups and early-stage businesses.
Funding Model: Equity crowdfunding.
Transaction Fees: Varies based on the investment deal.

Uprise.Africa is South Africa’s leading equity crowdfunding platform, allowing startups and SMEs to raise capital by offering shares in their company to investors. Unlike traditional funding methods, which rely on banks or venture capitalists, Uprise.Africa enables everyday people to invest in promising African businesses.

To get listed, businesses must go through a vetting process to ensure they are viable investment opportunities. Once approved, they create an investment campaign, outlining their financials, growth strategy, and funding needs. Investors then review the business details and decide how much equity they want to buy.

Uprise.Africa is best suited for startups with clear growth potential, as investors are looking for long-term returns. However, businesses using this platform must comply with financial regulations and shareholder obligations, making it more suitable for entrepreneurs comfortable with giving up equity in exchange for funding.

15. Thundafund

Best for: Creative businesses, social entrepreneurs, and product-based startups.
Funding Model: Reward-based crowdfunding.
Transaction Fees: 5% to 7% platform fee, depending on the campaign type.

Thundafund is Africa’s premier reward-based crowdfunding platform, designed for businesses in the creative, tech, and innovation sectors. It operates on an all-or-nothing funding model, meaning campaigns must reach their set target to receive funds. This model encourages backers to contribute more aggressively, as projects that don’t meet their goals don’t get funded.

Entrepreneurs start by creating a project page, setting a funding target, and offering tiered rewards for backers. These rewards could be early product access, limited-edition merchandise, or exclusive experiences. Thundafund’s team provides coaching and marketing support to help campaigns succeed.

While this platform is perfect for product launches, creative projects, and mission-driven startups, it may not work well for businesses looking for investment capital or flexible funding options.

Key Takeaways

• Crowdfunding platforms for businesses provide an alternative to traditional financing, allowing entrepreneurs to raise capital from individuals, customers, and investors.
• There are four main types of crowdfunding: donation-based, reward-based, equity crowdfunding, and peer-to-peer lending, each serving different business needs.
• The best crowdfunding platforms for businesses depend on factors like funding model, fees, target audience, and business goals.
• Nigerian entrepreneurs have access to local platforms like Giving.ng, Imeela, and Fundanenterprise, while global startups can leverage platforms like StartEngine, WeFunder, and MicroVentures.
• A successful crowdfunding campaign requires a compelling pitch, clear funding goals, active promotion, and consistent engagement with backers.
• Choosing the right platform can increase the chances of securing funding, building brand awareness, and growing a loyal customer base.

Conclusion

Crowdfunding has transformed how businesses secure funding. Whether you’re launching a startup, expanding a business, or funding a creative project, there’s a platform designed to match your funding needs.

The key to success lies in choosing the right crowdfunding platform, crafting a compelling campaign, and actively engaging potential backers. Beyond raising funds, crowdfunding allows businesses to test market demand, attract loyal customers, and gain visibility.

If you’re looking for an alternative to traditional loans or venture capital, explore the platforms listed in this guide. Identify the one that best fits your business model, prepare your campaign strategy, and take action. With the right approach, crowdfunding can be a game-changer for your business’s growth and success.

For more detailed insights and professional support, explore our business resources, such as templates and guides to streamline your operations. If you need tailored advice, connect with experts through our Ask An Expert service.

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FAQs on Crowdfunding Platforms for Businesses

What is the best crowdfunding platform for businesses?

The best platform depends on your funding needs. If you want to sell equity, platforms like StartEngine or WeFunder are ideal. If you prefer reward-based funding, Indiegogo or Thundafund work well. For donation-based funding, Giving.ng and M-Changa are great options.

Do crowdfunding platforms charge fees?

Yes, most platforms charge a percentage of the funds raised, usually between 3% and 10%, plus payment processing fees. Some platforms, like Giving.ng, charge no platform fees, while others, like Kickstarter, operate on an all-or-nothing model, meaning you only receive funds if you meet your goal.

Can Nigerian businesses use global crowdfunding platforms?

Yes, but many global platforms require businesses to be registered in specific countries. Nigerian entrepreneurs may face restrictions on receiving funds from platforms like Kickstarter or GoFundMe. However, Nigerian-friendly platforms like Giving.ng, Imeela, and Fundanenterprise cater specifically to local businesses.

Is crowdfunding a good way to start a business?

Yes, crowdfunding is an effective way to launch a business, especially if you lack access to traditional financing. It allows entrepreneurs to validate their ideas, generate pre-sales, and gain market visibility without taking on debt. However, success depends on strong marketing, a compelling pitch, and active promotion.

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

It depends on the platform. Some, like Kickstarter and Thundafund, operate on an all-or-nothing model, meaning you won’t receive any funds unless you reach your goal. Others, like Fundly or Indiegogo, offer flexible funding, allowing you to keep whatever you raise.

How long does it take to receive funds after a successful campaign?

Most platforms release funds within 7 to 14 days after the campaign ends. However, for equity crowdfunding, funds may take longer due to regulatory approvals and investor agreements.