Have an innovative idea for a new project? You studied it well and planned it enough that you became certain that it would not only change your life but the world? But you backed off a bit once that question crossed your mind.
.jpg "Best Arabic Crowdfunding Platforms (6 Trusted Platforms)")
Where will I get the capital that enables me to implement the project?
This article will provide you with an effective solution to the funding problem, which is crowdfunding platforms, specifically we will talk about Arab crowdfunding platforms.
We all agree that capital is the main driver of any project, and its absence may constitute an obstacle to embodying our ideas on the ground, but this is no excuse, especially in our current time.
Where technological development has provided us with many methods of financing projects, bank financing is no longer the only solution for owners of new ideas and entrepreneurial projects, but rather more effective solutions have emerged such as crowdfunding platforms.
In this article, we will learn about crowdfunding of its four types, and the most important reliable and guaranteed Arab crowdfunding platforms to finance your project or startup.
What is crowdfunding?
Crowdfunding is when a large group of people donate small amounts to fund a project through authorized online platforms.
Instead of emerging entrepreneurs resorting to traditional methods such as banks, or grants and government support... it is enough for them to present their idea in an attractive and convincing way on one of the platforms to collect the necessary capital to start their project.
The crowdfunding idea is based on 3 elements:
a large number of financiers.
Small amounts of donations.
Crowdfunding platforms.
The field of crowdfunding has been able to achieve rapid growth over the past years. In 2014, the volume of funding worldwide reached $16.2 billion, and this figure is expected to rise to $96 billion by 2025.
This is strong evidence of the interest of both investors and owners of entrepreneurial ideas on crowdfunding platforms, as it brings benefits to both parties.
Types of crowdfunding
1. Equity-based crowdfunding
It is the process of collecting small contributions from a large number of financiers in exchange for their obtaining specific shares in the company (shares).
In this case, the financier becomes a shareholder in the company, which makes him enjoy the possibility of making profits in the event of the success of the project, or losing his investment in the event of the company's bankruptcy.
2. Debt-based crowdfunding
It depends on the startup company borrowing sums of money from financiers in return for paying it back, with or without interest, according to a specific period of time.
Project owners do not repay unless the projects start achieving sufficient revenues and profits, and this is what distinguishes it from traditional loans.
3. Reward crowdfunding
It is the most widespread type of crowdfunding, in which the financier in this case makes his contribution in exchange for a reward or a gift, such as receiving a copy of the product that you produce, as the return in this case is non-financial.
4. Donation crowdfunding
Donations are collected and presented to project owners through the specialized platforms, free of charge, like any other charitable work.
Either a group of donors contribute to this, or in other cases one person takes over the costs of the entire project.
Also read: The most important methods of financing startups and projects (5 methods explained)
The most important Arab crowdfunding platforms
Below we will mention the most important Arab crowdfunding platforms that provide access to financing of all kinds, and that have contributed to the realization of the dreams of many Arab youth by supporting their creative ideas.
Hoping that you will also benefit from it in the journey of implementing your projects and applying your ideas on the ground.
1. beehive
A lending crowdfunding platform, headquartered in Dubai, and the first financial technology platform authorized to engage in peer-to-peer lending (p2p) activity in the Middle East and North Africa region, and registered with the Dubai Financial Services Authority in the Dubai International Financial Center.
This platform has managed to finance projects worth 1.2 billion dirhams since its inception in 2014.
2. Digital platform (Raqamyah)
It is an Arabic debt-based crowdfunding platform founded in Saudi Arabia. It connects small and medium companies that seek financing directly with financiers in return for obtaining financial returns.
Who can apply on a digital platform: The applicant must own a Saudi business recognized by the Ministry of Commerce.
The period of studying the funding application takes 3 days by a specialized team appointed by the platform, and if the application is accepted, it will be presented on the platform in order to start the financing process.
3. Yomken
It is one of the most important and popular Arabic crowdfunding platforms. It was established in Cairo in 2012 for the purpose of providing financial and advisory support to Egyptian youth and ideas owners.
Not only do you finance small projects and support startups, but the site allows you to raise a specific problem, such as developing a product, or improving a production line … as you ask the Internet audience to participate in finding innovative solutions.
All of this is in addition to training creators to manage and plan projects, and teach them e-marketing skills, pricing skills, and other services.
Over the years, thanks to the efforts of the team and the support of the community, Yomken.com has expanded, as it currently has an office in Tunis and is active in four other countries.
The platform offers two main services:
Crowdfunding: All you have to do is add your idea and a member of the team will contact you to start the financing campaign.
In the event that you are looking for a solution to a digital or environmental industrial problem: all you have to do is present your challenges on the platform to be linked to innovative solutions thanks to the crowd of innovators and specialists present on the platform.
4. DubaiNext
The first official government crowdfunding platform for startups in the UAE. It was established in May 2021 and is affiliated with the Mohammed Bin Rashid Establishment for the Development of Small and Medium Enterprises.
Availability
Support for young people with creative and ambitious ideas of different nationalities in Dubai. During its first year, it was able to finance 17 projects for young entrepreneurs.
How the DubaiNext platform works: The DubaiNext platform adopts an “all or nothing” model for financing projects, whereby the owner of the idea gets money if the required amount is reached within the specified time period, but if this is not achieved, the contributors get their money back.
The platform allows everyone, whether an individual or a company, of different nationalities (provided they reside in Dubai) and even students, to present their projects and ideas in various fields.
All you have to do is create an account on the platform that includes your data and information about the project, then you shoot an introductory video and share it.
In the event that you meet all the conditions, the platform will display your project to the public to start the fundraising process.
The role of the platform does not end at this stage only, but rather, through its qualified team, it provides training sessions and educational lectures, in addition to the possibility of issuing a commercial license and many other services.
5. Zoomaal
It is one of the Arab crowdfunding platforms, based in Lebanon. It was founded by the Lebanese youth Abdullah Absi in 2012.
It encourages Arab entrepreneurs and innovators to submit their projects for financing, and it relies on the reward system that we talked about earlier.
Zoomaal is characterized by the fact that it does not set a specific financing ceiling for any project, but rather leaves the public and potential investors free to choose the project they wish to support.
How does the Zoomaal platform work?
a) Write a description of your project in an attractive way that talks about your idea, your future aspirations, and your project requirements, and tell everyone why they should support your idea.
Advice: Try to be optimistic, show your passion and enthusiasm for the idea, and avoid costliness and complexity as much as possible, in order to be more convincing to the investor.
b) Shoot a video clip that includes the subject of the characterization.
c) Determine the amount needed for your project, and the period during which you want to collect it. Determine what type of rewards the backers will receive.
d) After that, the platform will display your campaign for all people around the world to see and contribute to its financing.
e) If you fail to reach your target by the deadline, all funds will be returned to their shareholders.
But you can divide your goal into achievements by setting a minimum goal and explaining what you can do if you can raise this amount, and explain your final goal, and what you will be able to do if you reach it.
After your project is successfully funded and you receive the money, it is time to start implementing your project.
When you start realizing your project on the ground, you must keep the supporters informed of the latest news and updates of your project.
It is worth noting that Zoomaal has achieved rapid growth, as the number of projects presented on the platform increased from 390 projects in 2013 to more than 10,000 projects in 2016.
This made it the fastest growing Arab crowdfunding platform.
6. Cotizi
The first Moroccan website to provide the possibility of crowdfunding for projects and humanitarian cases through donation campaigns, directed mainly to Moroccan youth, whether they were individuals or associations.
How does the Cotezi platform work: After defining your idea and campaign goals, you create a piggy bank that includes the name and content of the campaign, and the amount to be collected. You invite donors via e-mail or various means of communication by sharing a link to your money box.
There is no time limit for the campaign, and the fact that your campaign does not reach the target amount will not be an obstacle to transferring funds to your bank account.
Conclusion
In this article, we tried to put in your hands the most important Arab crowdfunding platforms that are approved in the Middle East and North Africa region, but there are many others.
Therefore, care must be taken when dealing with any platform, especially for investors, so as not to fall into the net of fraud and fraud.
Be sure, dear reader, that solutions are always there, but the basis for the success of your project is your innovative idea and the extent of your belief in it and your endeavor to achieve it.
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