Crowdfunding in Japan Vol. 1: How to Choose a Japanese Crowdfunding Platform

As per a comment from an entrepreneur, “Crowdfunding holds a fascination as it acts as a litmus test, verifying the worth of your idea. By creating engaging video or written material with minimal investment, we can gauge people's readiness to support a product or concept. The true benefit of crowdfunding lies in the insight it provides into the potential of the market, rather than just the funds raised.

As the crowdfunding market grows, many brands see it as a solution. To succeed, you need to plan carefully, set realistic goals, choose the right platforms, and understand your audience. Thorough research, effective marketing, and storytelling are essential for brands to maximize their potential and bring innovative ideas to life in the expanding market.

When gearing up to launch a project on a Japanese crowdfunding platform, which platform should you pick and what info should you focus on? If you're curious too, let's dive into the quirky world of Japanese crowdfunding platforms!

"Purchase type" crowdfunding involves offering products and services in exchange for support, making it suitable for businesses aiming to enter the Japanese market. This approach not only raises funds but also helps build brand awareness and connects with potential customers. In contrast, "Donation type" crowdfunding is typically used for social causes such as disaster relief.

If you're thinking of investing in a shopping platform, consider its popularity and stability. SNS marketing in Japan relies heavily on influencer attention, so the traffic aggregation effect of a major platform is crucial. Additionally, some websites focus on specific types of products such as food, small goods, music events, and niche academic items. If the target audience of these websites overlaps with your project's main audience, they are also worth considering.

Building a loyal fan base requires the introduction of fresh initiatives. Although creating videos and enhancing content are essential, the time taken for platform review remains uncertain. Delays in approval can lead to missed opportunities in converting sales for products aimed at peak seasons throughout the year. It is important to highlight that crowdfunding platforms in Japan have longer review and payment timelines compared to those in the US.

When discussing crowdfunding platforms in Japan, there are those that provide a range of services, including project initiation, online and offline sales, distribution channels, and advertising. Platforms that are more comprehensive tend to charge higher fees, which average around 17%. However, they also tend to enjoy greater popularity and offer shorter review periods, potentially increasing the chances of success. Selecting the appropriate platform is essential to minimize unnecessary expenses and maximize the crowdfunding experience.

When it comes to choosing the right crowdfunding platform for your project, there are several key factors to consider. In fact, one of the most important aspects to consider is the platform's popularity, followed by the project success rate, fundraising difficulty, fees, review period, and post-launch platform support. Each platform can be evaluated based on the following five criteria:

Ultimately, it's important to thoroughly compare the characteristics of each platform in order to find the best option for launching your project.