Crowdfunding Strategy by Startup

Abstract

In recent years, crowdfunding, as a way to raise money, is considered an important method to implement great business ideas. In Japan, it is also getting recognized as an important financing strategy, mainly by startups. However, the analysis of this system has basically focused on empathy and how to gain supports. It has never focused on revealing the relationship between the crowdfunding and the product development after financing. In this paper, we specifically examine a case study of a company that has successfully implemented purchasing-based serial crowdfunding. As a result, it became clear that 1)the project has shifted to test marketing while focusing on empathy, 2)social capital among supporters is important for multiple implementations, and 3)social capital among supporters may have a significant impact on the project and product development after the funds are collected.