Crowdfunding in a few words

Crowdfunding or participatory financing is a substitution for bank financing. It is a means of investing in the creation of businesses, but also of taking over and / or developing activities. It is participatory, because people constituted in “communities” “get together” to support a project. It is also an accompaniment or complement to other financial tools such as bank loans, micro-credits, loans etc. Finally, crowdfunding puts you in touch with funders in various fields of activity who are altruistic or awaiting income.

Some types of crowdfunding

Reward crowdfunding or donation:

It can be with or without consideration. When it is without consideration, it is an outright donation. When it is with a counterpart, it is a symbolic counterpart materialized by small gifts.

It could also be, even more symbolically, pre-sales or pre-orders of the product or service for which the investment project was launched.

This is an ideal way to test products and services on the target.

According to the FPF-KPMG Crowdfunding Barometer, average donations are:

  • Donations without consideration: 69 euros.
  • Donations with counterpart: 62 euros.

The amounts collected vary between 3,000 and 5,000 euros.

The loan or crowdlending

The channels used here are the platforms specially designed for loans. A multitude of lenders participate to the extent of their means. It will be :

Loans with interest
Loans without interest, surety or guarantee
Loans in minibons
The loans granted will have a maximum duration of 7 years and will be remunerated or not. If so, a rate of 8% is observed on average.

The amounts are also capped at 2,000 euros if remunerated and 5,000 euros if not.

FPF-KPMG Barometer data show that the average amount of contributions per project is:

  • 95 euros for unpaid loans
  • 310 euros for those paid
  • 2,368 euros for minibon loans
  • with an average amount collected between 1,000 and 200,000 euros depending on the type of loan.

Investment or crowdequity

At this level, the funding providers become shareholders of the project, giving them the right to monitor, vote, but also future dividends.

The investment can be:

  • Capital: capital gains on the sale of securities remunerating the investor
  • In bonds: remuneration in the form of interest
  • Against royalties: commissions on turnover achieved

Some investors would benefit from tax advantages.

FPF-KPMG Barometer figures on the average amounts of contributions per project:

  • 5,896 euros for bonds
  • 7,745 euros for capital investments
  • 357 euros for investments against Royalties

Average amount collected between 40,000 and 500,000 euros depending on the type of investment.

How to do it?

The right choice of platform

It is a question for you to choose the most suitable platform for your project based on certain criteria such as the sector of activity, the amount you wish to raise, the success rate, the audience of the platform.

The area of ​​the activity

From generalized platforms to specialized platforms, it would be easier for you to be in contact with professionals because they are passionate. On the other hand, it is more difficult to position oneself on them.

The amount you want to raise

You should act on the basis of similar successful projects to make your project more interesting, thus increasing your chances of fundraising. The more money you collect, the more effort you have to put into your campaign.

The success rate

On a well-defined scale, what would be your percentage of success? What is the percentage of success of similar projects on the platform on which you want to position yourself?

The audience of the platform

The number of Twitter, Facebook, and active contributors to the platform are essential criteria to study when it comes to audience. Your level of popularity, like that of the platform, is essential to bring back the maximum number of contributors.

Organize promotional content for the campaign in advance.
An energetic campaign is an essential element, indispensable for its success.

Quickly reach a high financing rate
The greater the funding, the more it encourages the undecided to participate. To do this, it is important to count on your loved ones to build up funds upstream that will boost your campaign from the start. Keep them informed of the different procedures. They are your first promoters.

Give value to your project

Put attractive content like visuals, videos, and photos for your presentation, because your investors are fond of this: this type of content reassures them, and gives them confidence.

Carefully choose the duration of your campaign

Go for a campaign that is neither too short nor too long, lest the excitement wane and end up bogged down. While some like to invest at the last minute, have good timing.

Advantages and disadvantages of crowdfunding


  • Rather short deadlines for small projects
  • No banking hassles
  • Promotes support (expertise)
  • Enables B to B thus reinforcing human values
  • Carrying out an indirect market study


We must consider the percentage of platform commissions that can reach 12%.

Examples of platforms


Present in 223 countries, interesting in terms of international coverage:

  • Funding method: all or nothing
  • Commissions: 5% plus third-party commissions on credit card payments.


Platform for creative projects.

  • Funding method: all or nothing
  • Commission: payment processing fees between 3 and 5%


It supports creative, innovative, solidarity projects. Present in 176 countries.

  • Method of financing: all or nothing.
  • Commission: variable, depending on the location of the project leader, the currency, and the method of payment.

The Beehive :

Available only in the Quebec region, and only supporting projects in the said zone.

  • Funding method: all or nothing
  • Commission: 7% plus taxes.


Platform for agrifood projects.

  • Method of financing: from 60% of the target.
  • Commissions:
  1. 12% TTC (between 60 and 70% of the target).
  2. 10% including tax (between 75% and 99% of the target).
  3. 8% incl. Tax (100% of target or more).

The Crowdfunding method thus turns out to be rather effective, and is the most popular means of financing for new startups.

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About The Author

CEO AfrikaTech

Comme beaucoup de personnes j’ai connu l’Afrique à travers des stéréotypes : l’Afrique est pauvre, il y a la guerre, famine… Je suis devenu entrepreneur pour briser ces clichés et participer à la construction du continent. J’ai lancé plusieurs entreprises dont Kareea (Formation et développement web), Tutorys (Plate-forme de e-learning), AfrikanFunding (Plate-forme de crowdfunding). Après un échec sur ma startup Tutorys, à cause d’une mauvaise exécution Business, un manque de réseau, pas de mentor, je suis parti 6 mois en immersion dans l’écosystème Tech au Sénégal. J’ai rencontré de nombreux entrepreneurs passionnés, talentueux et déterminés. A mon retour sur Paris je décide de raconter leur histoire en créant le média AfrikaTech. L'objectif est de soutenir les entrepreneurs qui se battent quotidiennement en Afrique en leur offrant la visibilité, les connaissances, le réseautage et les capitaux nécessaires pour réussir. L'Afrique de demain se construit aujourd'hui ensemble. Rejoignez-nous ! LinkedIn:

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