Makuake is one of Japan's largest crowdfunding platforms. It was spun out of CyberAgent in 2013 with Ryotaro Nakayama (or Naka as his foreign friends call him) as CEO.

Crowdfunding has taken off more slowly in Japan than it has in the US, and it has followed a different growth path. It started out primarily as a way to raise money for charitable causes and at the moment crowdfunding  seems to be having a more significant impact on corporate Japan than on smaller Japanese ventures.

Of course, things are changing fast. More and more creative individuals are taking advantage of crowdfunding platforms, and last year the Japanese government amended the law to allow new ventures to raise capital via crowdfunding.

So perhaps we should say Crowdfunding in Japan is not only about startups

Show Notes for Startups

Ryotaro's journey from driver to CEO
Why price is not that important if you have the right product
How crowdfunding began as a social movement
The unique quality demands of Japanese consumers
Vetting projects -- in person -- to prevent scams and failures
Why crowdfunding will be even more important for corporate R&D
How VCs use crowdfunding to find new companies
Why so many creatives are leaving big Japanese companies and what it means for the future

Links from the Founder

Makuake Home Page
Naka's Blog
Follow Naka on twitter @nryotaro
Friend him on Facebook

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Transcript from Japan
Welcome to Disrupting Japan straight talk from Japan's most successful entrepreneurs. I am Tim Romero and thanks for listening.

Today, we are talking about Crowd Funding. Now, Crowd Funding has grown more slowly and somewhat differently in Japan than it has in the U.S. The basics are the same of course. Large numbers of people pledge small amounts of money to charitable causes to support them.

Innovative projects to get early access to the finished product, and to new companies to get a small slice of the equity.

Ryotaro Nakayama or Naka as his English speaking friends call him is an entrepreneur. He started working at CyberAgent as a driver. Eight years later he managed to convince his employer to create a Crowd Funding Platform called Makuake. Then to spin it out as a separate company with him as the CEO. It is an interesting journey.

We also talk about how Crowd Funding is at least at the moment benefiting the larger Japanese companies. We also discuss how that is going to change in the future, and how that might lead to a larger shift in Japanese society. One that could very well lead to a start-up renaissance here.

I will let Naka tell you all about that.

[Interview Starts]

Tim: I am sitting here with Ryotaro Nakayama of Makuake, a Japanese Crowd Funding Platform. Thanks for coming in and talking to us today.

Naka: Thank you for inviting me.

Tim: Now Naka. We were talking before about how Crowd Funding is just getting started in Japan. How it might change a lot of things here. Before we get into Crowd Funding in particular. I think the story of how Makuake came to be is very interesting.

You were kind of an entrepreneur, right. You had worked for CyberAgent. You created this Division and they spun it out into a new company. Why don't you just tell us a little bit about that process.

Naka: Well, first of all when I was 23-years-old, 2006 I joined to CyberAgent. First, my job was Assistant of CEO.

Tim: Okay.

Naka: CEO's driver.

Tim: Okay, that is a good job. At least you are connected to powerful people.

Naka: The reason why I got this position.

Tim: Mm-hmm.

Naka: I selected this position. I was not interested in actual internet. The things that I wanted to do is to create my new company. Being beside of CEO that is the best way to learn how to create a company.

Tim: Did you just approach the CEO and say hey I have this crazy idea for a new company? You should fund it.

Naka: No. [laugh].