Market Insights Financial Capital Raising

Digital Capital Raising - Japan

Japan

The total transaction value in Japan's Digital Capital Raising market market is projected to reach €846.10m in 2024.
MarketCrowdlending (Business) dominates the market in Japan with a projected total transaction value of €563.30m in 2024.
From a global comparison perspective, it is shown that the highest cumulated transaction value is reached the United States (€33,380m in 2024).
In Japan, the trend of utilizing blockchain technology for digital capital raising in the capital market is gaining significant traction among tech-savvy investors.

Key regions: Brazil, Germany, United States, United Kingdom, China

Marché

Région

Comparaison de régions

Monnaie

Analyst Opinion

The Digital Capital Raising market in Japan has been experiencing significant growth in recent years.

Customer preferences: Japanese investors have shown a growing interest in digital capital raising platforms, as they offer a convenient and efficient way to invest in a wide range of assets. These platforms provide investors with access to a diverse set of investment opportunities, including real estate, startups, and alternative assets. Additionally, digital capital raising platforms often offer lower investment minimums, making them more accessible to a wider range of investors.

Trends in the market: One of the key trends in the Japanese Digital Capital Raising market is the rise of crowdfunding platforms. These platforms allow individuals to invest in a variety of projects and businesses, ranging from technology startups to real estate developments. Crowdfunding has gained popularity in Japan due to its potential for high returns and the ability to support local businesses and initiatives. This trend is expected to continue as more investors recognize the benefits of crowdfunding and as regulations become more favorable for these platforms. Another trend in the market is the increasing use of blockchain technology in digital capital raising. Blockchain technology provides a secure and transparent way to record and verify transactions, making it well-suited for digital capital raising platforms. By using blockchain technology, these platforms can provide investors with greater transparency and security, which is particularly important in a market like Japan where trust is highly valued.

Local special circumstances: One of the unique aspects of the Japanese market is the strong emphasis on trust and reputation. Japanese investors place a high value on the reputation of the companies and platforms they invest in, and this has influenced the development of the digital capital raising market. Platforms that have a strong track record and a good reputation are more likely to attract investors in Japan. This emphasis on trust has also led to the development of regulations and standards for digital capital raising platforms, which further enhances investor confidence in the market.

Underlying macroeconomic factors: The growth of the digital capital raising market in Japan can be attributed to several underlying macroeconomic factors. Firstly, Japan has a large and affluent population, which provides a strong base of potential investors. Additionally, the low interest rate environment in Japan has made traditional investment options less attractive, leading investors to seek out alternative investment opportunities. Finally, the government in Japan has been supportive of the development of the digital capital raising market, implementing regulations that promote innovation and investor protection. In conclusion, the Digital Capital Raising market in Japan is experiencing significant growth due to customer preferences for convenient and diverse investment options, the rise of crowdfunding platforms, the increasing use of blockchain technology, the strong emphasis on trust and reputation, and underlying macroeconomic factors such as a large and affluent population, a low interest rate environment, and supportive government regulations.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.