Launching a crowdfunding business
Updated: July 2026, 1
■ Overview
Crowdfunding is a combination of the words "crowd" and "funding.""A system for collecting small amounts of money from many people via the Internet in order to carry out a certain business."Say.
In crowdfunding, a "crowdfunding operator" generally acts as an intermediary and provides a service that matches "businesses (individuals/corporations) that want to raise funds" with "people who want to provide funds (supporters/investors)."
Also, even though it is simply called "crowdfunding," there are actually many different types.
TypicallyWhat type of reward/return will funders receive?By① Donation type ② Purchase type ③ Investment typeIt is classified into.
"① Donation type" and "② Purchase type" can also be grouped together as "Non-investment type."
The required licenses and permits and applicable regulations will vary depending on the scheme you choose, so you need to use it wisely depending on your purpose for crowdfunding.
[Non-investment type]
1. Donation-based crowdfunding
[Investment type]
3) Investment-based crowdfunding
[① Donation-based crowdfunding]
In donation-based crowdfunding, donors "donate" money.
Since it is a so-called "donation," the donor provides financial and non-financial support.No reward/return.
This is a scheme that is likely to be used for businesses with a high level of social contribution/public benefit, such as supporting the reconstruction of disaster-stricken areas.
(Example of a typical donation-based crowdfunding scheme)
In the case of donation-based crowdfunding, since it is simply a "donation" with no return,
In principle, no licenses or permits under the Financial Instruments and Exchange Act are required.
[②Purchase-based Crowdfunding]
In purchase-based crowdfunding, funders purchase products, goods, services, etc.Non-monetary rewards/returnsReceive.
For funders, this is a scheme that allows them to invest (support) with the feeling that they are purchasing a return.
For example, it is often used in entertainment businesses such as concerts, events, and movies, as well as product development businesses.
There are two types of purchase-based crowdfunding: "All-or-Nothing" and "All-In", and businesses can set it up according to their purpose.
(Please note that operations and rules differ depending on the crowdfunding company.)
| All-or-Nothing type (All or Nothing) | A project will only be established if the target amount is reached within the fundraising period. If the target amount is not reached, the project will not be established (end), the business operator will not be able to receive the funds raised, and the funds will be refunded. |
| All-In Type (All in) | Even if the target amount is not reached within the fundraising period, the project will be successful if there is even one backer. If the project is successful, the business operator must carry out the planned project return regardless of the amount of funds raised. |
For example, if you want to see consumer reaction to a newly developed product in advance (test marketing), you might choose the all-or-nothing model and observe how quickly you attract customers and the response during the recruitment period.You might also leave the decision to form a group or hold an event to the outcome of the crowdfunding campaign (the success or failure of the project).
Furthermore, purchase-based crowdfunding allows you to gather core users and fans of the project product or plan you have set up, which can be used as an opportunity to hear their real opinions and use them to improve the product, etc.
(Example of a typical purchase-based crowdfunding scheme)
Generally, purchase-based crowdfunding does not require licenses and permits under the Financial Instruments and Exchange Act, but it is subject to the same regulations as internet mail-order businesses, such as the Act on Specified Commercial Transactions (Specified Commercial Transactions Act), so caution is required.
[③ Investment-based crowdfunding]
In investment crowdfunding, funders receive dividends etc.Financial rewards/returnsReceive.
There are various types of investment crowdfunding, such as "equity crowdfunding," "social lending (lending/loan crowdfunding)," and "real estate crowdfunding." Depending on which type you choose, the scheme, the people involved, and the laws and regulations that must be complied with will vary greatly.
[Reference] The following is an excerpt from the website of the Type II Financial Instruments Firms Association
(Example of a typical investment crowdfunding scheme)
In the case of investment-type crowdfunding, applicable regulations tend to be stricter than for donation-type or purchase-type crowdfunding. In reality, depending on the scheme, the necessary licensed business operators (※) must be involved and the business must be operated in accordance with various laws and regulations such as the Financial Instruments and Exchange Act.
(※) Financial instruments business operators, money lenders, real estate specified joint venture companies, etc.
Another characteristic of investment crowdfunding is that regulations and laws regarding it are subject to frequent revisions.
In particular, regulations and laws tend to become stricter whenever a scandal or other problem occurs, so be sure to always check the latest laws and regulations and their application.
■ Summary
That's the basic overview of crowdfunding.
When conducting a crowdfunding business, the applicable types and legal regulations will vary greatly depending on the individual and specific circumstances of the actual scheme, etc.
It is also an area where there are many changes in the law.
You should carefully review the applicable schemes, laws and regulations depending on your individual circumstances.
If you are considering starting a crowdfunding business, please contact us.
