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Japanese Crowdfunding Platforms: How FinTech Solutions Pitch Investors

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Japanese Crowdfunding Platforms: How FinTech Solutions Pitch Investors

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The finance industry in Japan has grown tremendously, with cashless businesses, cryptocurrency-based businesses, crowdfunding, robo- advisers, etc., businesses increasing rapidly. The FinTech companies in Japan are going cashless and mobile, with Japanese crowdfunding platforms growing tremendously. You can witness many Japanese startup companies registering with online crowdfunding platforms. It supports innovation and growth in the finance industry with faster operations and tailor-made experiences. However, the FIEA (Financial Instruments and Exchange Act) regulations apply when the business mostly gets funds from the internet from issuing the tokens.

Campfire is known as the largest crowdfunding digital platform in Japan. They are democratizing the way finance is seen anywhere across the globe. They help people with raising money over the internet for their startups. It is a reward-based crowdfunding platform that supports alternative financing for small and upcoming businesses. 

Campfire’s launch helped collect 75 billion Yen for the 79,000 projects with over 10 million backers. The FinTech Japan scenario is quite innovative, with these crowdfunding platforms helping various startups realize their dreams. This platform is committed to becoming the largest crowdfunding platform in Japan by dealing in various sectors like social goods, product-based startups, fashion, gaming services, technology and gadget, anime, etc.

Moreover, Campfire helps startups and other companies, regardless of size, with the best crowdfunding in Japan. The businesses will be introduced to the local partners to provide a seamless marketing experience. 

The platform also helps with test marketing in Japan, helps to assess the authenticity and viability of your company, connects you with retailers in the country, helps manage Ads, and you can run a pre-sales round for your products too. This crowdfunding platform also has an experienced platform to support your programs. They charge a 17% commission fee, though.

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Source: Campfire

Analysing Japanese Crowdfunding Platforms and Their Future Growth

The value raised by the crowdfunding platform in Japan has seen economic growth in the past few years. 2022 witnessed the market value increase from 184.7 billion Yen in previous fiscal years to over 190 billion Yen in 2022. It has shown tremendous growth in the FinTech market in the country. 

Source: statista.com

The TMCNET news states the best digital crowdfunding platforms are increasing in Japan and globally. The global crowdfunding market is set to grow at a CAGR of 15.86% between 2022 and 2027. The market size will grow to $264.09 billion. The market presence of FinTech companies globally is also helping with the growth of crowdfunding platforms globally. 

The FinTech companies in the country are growing rapidly, with Japan becoming the 3rd largest global financial center. The market is expected to reach $11 billion, and the number of digital payment users will increase to 113 million. There are 5 top funded FinTechs in Japan Quoine, Freee, WealthNavi, Tech Bureau Holdings, Corp., and Paid y. Even the average FinTech companies’ salaries in the country have reached 14 million Yen annually. 

The crowdfunding platforms are increasing rapidly, with the crowdfunding market size growing by $239.78 billion. 63% of the growth in this market will occur from APAC. Social media is used as an affordable solution to promote crowdfunding platforms. There will be P2P lending, hybrid investments, equity investments, and rewards. The CAGR growth during the period 2021 and 2026 will be 16.81%. 

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How do Digital Crowdfunding Platforms Help Investors and Entrepreneurs?

A modern digital transformation company in Japan such a Tntra, can actively help in growing businesses through engineering, incubation and venture support.

Over time, platforms like J-Pledge have emerged as the go-to source for startups, investors, and small and mid-sized business owners seeking to raise capital online. Also, a Fintech software development company can influence how businesses raise funds. 

  • Growth of Venture Capitalists: Venture capitalists have grown in number and are helping with many investments. From individual to institutional investors, everyone is funded by big venture capitalists. Only your idea must be innovative and well-designed.
  • Helpful for Startups: Newly built startups can increase their investments and combine technologies to deliver their financial and other services to users.
  • Product-Based Market: If investors and entrepreneurs launch a great product in the market, they can get the required funds through crowdfunding platforms.
  • Regulatory Compliance: Even these platforms are regulated under FIEA, as the government regulatory bodies and policymakers support innovative products and services.
  • Digitization of FinTechs: The digitization of financial services helps bring innovation to the market. The crowdfunding platforms can take software product engineering services from reputed agencies to develop considerable apps.
  • Supports in Raising Required Funds: Businesses with smaller budgets can register with any reputed crowdfunding digital platform in the country to raise project investments. The product-based businesses can call the stakeholders to start with their production processes. 

Conclusion

Digital crowdfunding is rapidly increasing in Japan because of innovations and modern technologies. The FinTech scenario is changing because of the lucrative investment options venture capitalists and the government is offering. Moreover, the FinTech companies providing financial solutions can avail of different software development services from a reputed software development company in Japan, Tntra. With their modern technologies and engaging features, they can enable you to connect with a wide network of investors. 

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Call Tntra experts today to discuss the requirements for your next digital crowdfunding projects!

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