Market Insights Financial Capital Raising Digital Capital Raising

Crowdfunding - Japan

Japan

The Crowdfunding market in Japan is expected to see a total transaction value of US$185.0m by 2024.
When comparing globally, the United States leads with a projected transaction value of US$465m in 2024.
In Japan, Crowdfunding platforms are gaining popularity as a modern way for startups to access capital in the Capital Raising market.

Key regions: Europe, Germany, Singapore, Australia, India

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Analyst Opinion

The Crowdfunding market in Japan has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth of the Crowdfunding market in Japan is the changing preferences of customers. Japanese consumers are increasingly looking for unique and innovative products and services, and Crowdfunding provides an avenue for them to support and invest in these ideas. The Japanese market has a strong culture of supporting local businesses and entrepreneurs, and Crowdfunding allows individuals to contribute to the success of these ventures. Additionally, Japanese consumers are known for their interest in technology and gadgets, and Crowdfunding platforms often showcase cutting-edge products that appeal to this demographic.

Trends in the market: One of the key trends in the Crowdfunding market in Japan is the rise of niche platforms. While there are several popular international Crowdfunding platforms operating in Japan, there has been a surge in the number of platforms catering specifically to local projects and initiatives. These niche platforms focus on specific industries or regions, allowing entrepreneurs to connect with a targeted audience that is more likely to support their projects. This trend reflects the desire of Japanese consumers to support local businesses and contribute to their communities. Another trend in the Crowdfunding market in Japan is the increasing popularity of reward-based Crowdfunding. This type of Crowdfunding allows individuals to contribute to a project in exchange for a reward, such as a product or service. Japanese consumers are drawn to the idea of receiving a tangible reward for their investment, and this has led to the success of many reward-based Crowdfunding campaigns in the country.

Local special circumstances: The unique cultural and social factors in Japan have also contributed to the growth of the Crowdfunding market. The concept of "omotenashi," which refers to the Japanese spirit of hospitality and service, plays a significant role in Crowdfunding. Japanese entrepreneurs often emphasize the value of their projects to society and the community, and this resonates with Japanese consumers who prioritize supporting local initiatives. Additionally, the strong sense of community in Japan encourages individuals to come together and support projects that benefit the collective.

Underlying macroeconomic factors: The Crowdfunding market in Japan has also been influenced by macroeconomic factors. The country has experienced a period of economic stagnation in recent years, and this has led to a decline in traditional sources of funding for entrepreneurs. Crowdfunding provides an alternative financing option for individuals and businesses, allowing them to bypass traditional financial institutions and access capital directly from the public. Furthermore, the low interest rate environment in Japan has made it less attractive for individuals to keep their money in savings accounts, leading them to explore alternative investment opportunities such as Crowdfunding. Overall, the Crowdfunding market in Japan is thriving due to changing customer preferences, the emergence of niche platforms, the popularity of reward-based Crowdfunding, unique local circumstances, and underlying macroeconomic factors. As the market continues to evolve, it is expected that Crowdfunding will play an increasingly important role in supporting innovation and entrepreneurship in Japan.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.