Crowdfunding Market in Japan: Key Research Findings 2018
Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the domestic crowdfunding market and has found out the market size (the amount for supporting new projects), number of new projects to fund, number of supporters, trends by funding type, trends of market players, and the future outlook.
The domestic crowdfunding market size in FY2017 (i.e., April 2017 to March 2018) rose remarkably by 127.5% from the previous fiscal year to achieve 170,000 million yen, calculated based on the annual sum of money collected for new crowdfunding projects.
The new projects were funded in the form of the followings: By Purchase attained 10,000 million yen (which account for 5.9% of the entire market, based on the sum collected for new projects); by Donation achieving 700 million yen (0.4%), by Investment reaching 5,000 million yen (3.0%); by Social lending attaining 153,400 million yen (90.2%); and by Equity reaching 900 million yen (0.5%). Social lending still occupied about 90% of the entire market, contributing to the market expansion. Despite that Purchase crowdfunding attracted the largest number of companies entering the market, the composition ratio only accounted for 5.9%.
One of the reasons for the market expansion other than growth of crowdfunding by Purchase is that the Financial Instruments and Exchange Act having been amended in 2015 to make Equity (stock investment) crowdfunding available since April 2017.
Crowdfunding is about to establish its position as a new gateway for fundraising, as more local governments started utilizing crowdfunding, together with a series of new entry by media conglomerates as well as some enterprises from transportation, manufacturing, and product sales industries, and as business alliance between website operators and financial institutions has been made progress. In such a status, online banks, that provide banking services through internet, has also newly entered the market. Therefore, the domestic crowdfunding market is projected to expand furthermore.
The number of new project supporters in FY2017 has been doubled from the previous fiscal year with cumulative total number of supporters reaching 1,370 thousand, and the number of projects funded reaching 15,321. Purchase-based crowdfunding has particularly contributed to such an expansion, with the number of supporters occupying 58% (790 thousand people) of the entire supporters.
With regard to the number of new projects funded, while those projects funded in the form of Purchase occupied about 60% in FY2016, those Social-Lending-based projects has largely increased in FY2017. The market has come to be occupied by these two funding types, Purchase and Social-Lending types, viewing from the number of projects.
Social-Lending-based crowdfunding has still been invigorated by competitive high returns. Encouraged by relatively shorter investment period and the investors apt to be eager to fund, the number of fully-funded projects from Social-Lending has been increasing further more.
On the other hand, Purchase-based crowdfunding has shown stable increase, boosted by the projects of “local revitalization” and “product manufacturing.” Purchase-based crowdfunding tend to succeed in collecting funds regardless of the size of the projects which was in the range between less than 10,000 yen per project and more than 100 million yen.
The copyright and all other rights pertaining to this report belong to Yano Research Institute.
Please contact our PR team when quoting the report contents for the purpose other than media coverage.
Depending on the purpose of using our report, we may ask you to present your sentences for confirmation beforehand.