Have an idea you know people will love? Don’t have the startup capital to start your idea? Then you should crowdfund that idea, most people would say. You get to show the world your concept, and accrue the funds necessary to realize that concept without having to worry about bank loans or investor demands. But what are your chances at actually succeeding, and fully funding your project? The short answer: 30%. Roughly two-thirds of projects fail to get funding!
But, is this true around the world? Let’s take a quick look, comparing two of the world’s largest economic powerhouses.
American crowdfunding allows global ventures, attracting investors and drafters from multiple countries. At the head of the pack of crowdfunding platforms are Kickstarter and Indiegogo, home to individual products that managed to raise ￥1 billion.
That being said, according to Statista, Kickstarter and Indiegogo’s success rates in 2017 are 35.8% and 18% respectively. Not particularly high, but there is still the potential to pull in great sums for your project.
Back in 2011, Japan was introduced to the world of crowdfunding. Year by year the platform has grown, massing ￥47 billion in 2016.
According to a representative from ReadyFor, Japan’s first crowdfunding site, their success rate falls between 65-70%. Meanwhile, CAMPFIRE, the largest crowdfunding platform, and Makuake, which focuses on food products, only have about 20-30% success rate.
Averaging the platform to platform success rate, we can conclude that there is approximately a 50% success rate in Japan.
Setting aside that we are not looking at total number of projects, we can see some interesting trends between crowdfunding markets.
America has a lower success rate, but there is the potential to pull in more funding. This is your classic ‘high risk, high reward’ scenario.
However, Japanese crowdfunding sites boast overall superior success rates. Funding goal numbers currently do not reach the dizzying heights of America, but if Japan can maintain its success rate, imagine the amounts it could amass if it started aiming for those numbers.
Regardless of which market you choose, always remember to assess what your project needs, and which platform can help you reach your goals. We can help you navigate your decisions in Japan successfully.
Gloture is a Tokyo-based creative PR & Marketing agency offering Japanese market entry services for overseas companies entering into Japan. For inquiries into event management and marketing services please contact us at firstname.lastname@example.org