Is crowdfunding illegal in Nigeria?

Is crowdfunding illegal in Nigeria?

Start-ups in Nigeria also use crowdfunding platforms such as Kickstarter, GofundMe, Patreon amongst others, to raise capital. Crowdfunding in Nigeria however, remained unregulated until January 2021 when the Securities and Exchange Commission (SEC) issued the SEC Rules on Crowdfunding (the “Rules”).

What are the disadvantages of crowdfunding?

if you haven’t protected your business idea with a patent or copyright, someone may see it on a crowdfunding site and steal your concept. getting the rewards or returns wrong can mean giving away too much of the business to investors.

Are crowdfunding platforms legal?

Regulation Crowdfunding enables eligible companies to offer and sell securities through crowdfunding. The rules: require all transactions under Regulation Crowdfunding to take place online through an SEC-registered intermediary, either a broker-dealer or a funding portal.

How can I raise funds in Nigeria?

Best Crowdfunding Sites To Fund Your Business Ideas In Nigeria

  1. Kickstarter. Kickstarter is a funding platform for creative projects.
  2. NaijaFund.
  3. Fundanenterprise.
  4. CircleUp.
  5. MicroVentures.
  6. Indiegogo.

Is Kickstarter available in Nigeria?

Kickstarter Nigeria is a peer-to-peer money-raising platform that connects the people with the ideas to those with funds. It is a completely free platform to use; therefore, you do not require any registration or running fee. Although free to use, there are fees attached if your project is successful.

Why crowdfunding is a bad idea?

Crowdfunding Can Be Stressful A crowdfunding campaign is more than just asking for money. It requires marketing, PR, and strategy. It requires being sure that you can deliver whatever you promise to your investors. It also comes with deadlines and the very real chance of failing if you set your goals too high.

What are the benefits and drawbacks of crowdfunding?

What are the advantages and disadvantages of crowdfunding

Advantages of crowdfunding Disadvantages of crowdfunding
Pitching a project or business through crowdfunding can be a valuable form of marketing Failed projects risk damage to the reputation of the business and people who have pledged money to them

When did crowdfunding become legal?

2011- Crowdfunding Gains Washington’s Support In April of 2012, President Barack Obama signed the Jumpstart Our Business Startups (JOBS) Act into law. Also known as “the crowdfunding bill,” the JOBS Act aims to lessen regulation burdens on small businesses and has legalized equity crowdfunding.

Can a private company crowdfund?

Equity crowdfunding allows startups and private companies to raise capital from the crowd through the sale of securities like equity, debt, revenue share and more. Anyone, regardless of wealth, can invest in private businesses, not just the ones trading on stock exchanges, and they can do so online.

Where can I get financial help in Nigeria?

Top 7 Business Grants & Funding For Entrepreneurs And Business Owners In Nigeria (2019)

  • Tony Elumelu Entrepreneurship Programme (TEEP)
  • YouWIN Connect Nigeria.
  • Bank Of Industry (BOI)
  • GroFin Fund.
  • Diamond Bank BET Programme.
  • AYEEN Financial Grants.
  • Lagos State Entrepreneurs Trust Fund (LSETF).

Does Nigeria support GoFundMe?

GoFundMe is currently available in 19 countries in the world. It is not available in Nigeria yet, but you can still leverage the platform to raise money by asking someone in one of the supported countries to raise money for you instead.

Is Kickstarter available in Africa?

Kickstarter is open to backers all over the world. Anyone, from anywhere, can pledge to a project as long as they have a major debit or credit card.