Japan Turns to Crowdfunding As Lenders Shy

Putting sleeping money to work using crowdfunding is now catching fire in Japan. When banks won’t lend, some have turned to seek funding from the crowd.

Although not big stock market investors, the public is being enticed to lend money to small companies with “annual returns ranging from 2% to 10%, with the average at 5%. Investors are repaid over a few months, or as much as a few years.”

Crowdfunding in Japan is still small, estimated to be only about $80 million in 2013.  Small lenders appear to welcome crowdfunding platforms like Crowdbank.jp as a way to fill the gap when the banks will not/cannot lend to small businesses.

See the Wall Street Journal  article here: http://online.wsj.com/articles/crowdfunding-gains-ground-in-japan-1403794141

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Funding Portals, Investments, Legislative Intent, Small Business, Venture Capital and tagged , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.