Japanese investors and the economy en- route crowdfunding!

Crowd Funding Concept.
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Every economy is unique and so is the case with Japanese economy. After the 2008’s financial disaster and the natural disasters, the economy did not take much time to revive. This has been possible due to many innovative fund- raising models one of which is crowdfunding. The Japanese crowdfunding market is a notch below the billion dollars bar. The country has seen many platforms cropping up to support this online funding activity with ease. Earlier looked upon with apprehensions and a degree of unreality, the entrepreneurs soon understood the benefits of this model. Not just that, even the investors readily participated in this model. Crowdfunding has become a win- win situation for both the parties in Japan and here are a few reasons as to why:

  • Banks do not want to stir up their deposits with the low interest rates for lending especially to new and risky projects. This has reduced the accessibility to funds for most of the fund raisers. Besides, their requirements are not as big too that other types of lenders are interested. Even the venture capital does not work successfully for these fund raisers as their growth plans are limited. Therefore, crowdfunding meets both the ends apparently.
  • Economy wants to stir up the latent moneys of the Japanese common by helping them with better investment opportunities. Reports and statistics reveal that most of the people keep aside their earnings in the form of savings or cash which is quite liquid in nature. However, there is no movement of money despite the abundance of the same. In wake of this, the government has observed crowdfunding very opportunistic and has planned to commission a legal framework for the model to flourish. This will enable better circulation of money in the economy, reaching out even to the remotest place in Japan. Besides, the individual savers would be able to generate better returns on their savings otherwise when kept idle.
  • Investors consider crowdfunding as a good alternative to diversify their investment portfolios. Studies reveal that Japanese people are more apprehensive with stock investments and lack way behind despite all the economic growth in the country. They are risk averse when it comes to investments. This new model is considered as a safe way to get profits for their investments in different forms.

The crowdfunding model has picked up very fast in the Japanese economy. There are many reasons that have driven its growth here and for good. The model has touch based almost all the big and small industries – helping them achieve their financial requirements with better accessibility, ease and faster way too. From small scale businesses to bigger ones, the crowdfunding investment model has provided a jump start for one and all. Most of the funds raised are in the local currency of Japan whereas an average fund raising activity is around $50000. The investors are happy to see the charts climbing up. Japan has way to go in crowdfunding!


This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated by CoAssets.com. CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected] .

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