5. Crowdfunding in Japan

Japan has always been unique in the world due to several factors such as intrinsic trust in the society, tacit knowledge, technological progress, and relationship-based governance framework. Considering the above characteristics, this Chapter discusses the activities of crowdfunding in Japan by including a case of crowdfunding platform (Music Securities) and giving evidence of a crowdfund-backed firm (SABAR restaurant). We note that unlike the Western crowdfunding models that are seemingly profit-oriented with a short-term focus, Japan’s crowdfunding models tend to be long-term with a community approach backed by stakeholder theory, as it incorporates local banks and city officials in the lending models. Thus, knowledge of Japan’s crowdfunding approach is indeed crucial for Asian economies to make the crowdfunding ecosystem vibrant, credible, and sustainable.