Created : on Jul 15, 2020

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Crowdfunding is the process of soliciting for resources from an identified audience in exchange for a reward via online platforms. It provides an opportunity for the initiator, to request for funds directly from supporters, virtually, unlike the traditional fund-raising methods that involves applying for funds from banks, grants, foundations or investors1. It has also proven attractive as a result of prohibitive conditions attached to traditional fund-raising such as high interest rates.

The first Crowdfunding platform was launched in 2001.2 Subsequently, many individuals have taken advantage of the platform to fund their projects. Research revealed that there are approximately 452 platforms globally, who have channeled up to $1.47 billion in donations through Crowdfunding since 2011.

A considerable number of crowdfunding platforms exist in Nigeria, most of which have improved financing in the agricultural space. Startups such as Farmcrowdy, Thrive Agric and Pork Money are examples that have benefitted from Crowdfunding and have encouraged investments in agricultural businesses.