Project Reports

Vol. 10: The Different Types of Crowdfunding

In crowdfunding, except for donation-type types, it is common to set special products and services as “returns” instead of the project creator just receiving money from the backers.

Depending on the type of crowdfunding proposal, the way returns are created and made will differ as well as the in the actions and motivations of the backers.

For example, there is a high probability that supporters who want the product itself will gather for crowdfunding, which raises funds to bring out a new product. This is a type of purchase crowdfunding” and is a different method from donation-type crowdfunding for the purpose of social contributions such as charity. How you appeal to backers will be different.

There are roughly four types of crowdfunding types:
・ Purchase type crowdfunding

・ Donation crowdfunding

・ Loan-type crowdfunding

・ Investment type crowdfunding

Generally speaking, crowdfunding is mostly non-investment type “purchase type” and “donation type”. JAPANKURU FUNDING has a large number of “purchase type” that provides funds to businesses and projects.

“Loan type” and “investment type” are investment type crowdfunding, of which the company must be operated under the management of the Financial Services Agency and the Finance Bureau, and is not supported by JAPANKURU FUNDING. This type includes money as a return in addition to goods and services.

Funding for “Purchase Type” and “Donation Type” Crowdfunding
In the case of “purchasing” crowdfunding, which is the type of project we have the most, the returns become more important. Providing products and services that can only be obtained as a result of crowdfunding through successful financing and project realization is an important way to recruit backers. Therefore, in addition to background information, information such as why the product is better than others or why you should get behind the project, therefore appealing to the backers and making them want to fund the products and services.

On the other hand, in the “donation type”, it is necessary to move the backer’s heart and have them empathize with the project and the creator. The most common way is to provide an introduction to the people who actually need the funds to see what contributions will be used for. It is an important point for backers to feel sympathetic and supportive to the cause so that they will contribute to helping solve this problem and supporting the crowdfunding project.

At JAPANKURU FUNDING, there are many project proposals that combine these two elements. Our crowdfunding service supports projects that will delight overseas visitors and customers. This service is aimed at helping overseas people find ideas that will allow them to experience the charms of Japan more comfortably and personally.

For this reason, the project’s motivation for backers is expected to consist of both donation-type and purchase-type types. In order to acquire a wide range of backers, it will be necessary to think deeply about the projects content.

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