Japan’s Recent Recognition over the Importance of Crowdfunding.
Crowdfunding a very well known method of gathering a certain amount of funding from various backers on the Internet to finance a project, has finally begun to pick up within Japan after it successfully become a commonplace within the U.S. and European regions.
Crowdfunding platforms have managed to raise a total of $5.1 billion during 2013, according to an estimate by research company Massolution. Over sixty percent of the total raise during 2012 was from North America and 35% came from from Europe, with Asia accounting for slightly more than 1%.
Within Japan, some of the established crowdfunding sites, which include Readyfor and Campfire, which both launched during 2001, have recently started to gain an bigger presence with the general public.
Crowdfunding has already gained massive recognition with in the U.S. and Europe as an effective way for venture business to raise money. Among these projects financed are those who would normally be passed on over by venture capital and financial institutions because of the long periods of needed to regain the investment. Crowdfunding platforms allow entrepreneurs to publicize their business plans online and collect small contributions from many participants, which means that each investor shall suffer from a small loss if the projects doesn’t become successful.
“It’s very significant because it brings out ideas that were buried,” says Noriyuki Yanagawa, a professor at the University of Tokyo’s Graduate School of Economics.
Sometime during 2011, California-based Startup Whill manage to raise over 1 million yen on Japan’s Campfire platform and revealed a prototype of a fashionable wheelchair at the Tokyo Motor Show. If was then able to secure over $1.5 million within the U.S. The wheelchair has been slated to hit the markets during this summer.
Even the Japanese government has begun to start throwing their weight behind crowdfunding, The Financial service Agency is expected to revise rules as of early as next spring so venture businesses may collect a small sum over the Internet by offering thier own shares.