A General Overview Of Crowdfunding Investment In Nigeria

• Published date: 03 April 2024
• Law Firm: Aarndale Solicitors
• Author: Aarndale Solicitors

In recent years, crowdfunding has surged in popularity as a viable alternative investment option in Nigeria. This dynamic platform provides entrepreneurs and investors with fresh avenues to secure funding and engage in groundbreaking projects. We will explore the dynamic landscape of crowdfunding investment and its potential benefits in Nigeria.

What is Crowdfunding?

Crowdfunding is the practice of funding a project or venture by raising money from a large number of people, often strangers, typically via the Internet. It involves the use of small amounts of capital from a diverse group of individuals most of whom are not familiar with each other, to finance a new business venture.

Crowdfunding makes use of the easy accessibility of vast networks of people through social media and crowdfunding websites to bring investors and entrepreneurs together, with the potential to increase entrepreneurship by expanding the pool of investors beyond the traditional circle of owners, relatives, and venture capitalists.

Crowdfunding contributors can include friends, family members, investment groups, personal investors, and those interested in the business venture. The goal is to attract as many potential investors as possible.

Key facts and highlights

• Crowdfunding, also known as "online financing," is defined as raising funds to finance a project or business from the public using an online platform.
• The concept has recently been promoted as a way of assisting small businesses and start-ups looking for investment capital to help get their business ventures off the ground.
• Crowdfunding is regulated by the Securities and Exchange Commission.
• Through crowdfunding, individuals can invest in entrepreneurial start-ups through an intermediary, such as a broker-dealer or a "funding portal." or intermediary.

Types of...