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The six types of crowdfunding
Reward, donation, hometown-tax, equity, fund and lending — and which is for you.
Japanese crowdfunding is usually split into six types (型). The first three are about supporting; the last three are forms of investing — with real financial risk.
At a glance
| Type | You give | You receive | Risk |
|---|---|---|---|
| Reward (購入型) | A pledge | A product / experience | Low — delivery delay |
| Donation (寄付型) | A donation | Thanks / reports | Low |
| Hometown-tax / GCF | Hometown-tax | Tax deduction (+gift) | Low |
| Equity (株式投資型) | An investment | Shares | High |
| Fund (ファンド型) | An investment | Revenue-linked share | High |
| Lending (融資型) | A loan (via operator) | Fixed interest | Medium |
Support types
Reward (購入型)
The most common. You back a project and get a product or experience in return. Home of gadgets, food, fashion and books. Platforms: CAMPFIRE, Makuake, GREEN FUNDING, kibidango.
Donation (寄付型)
You give to a cause with no material reward — welfare, medical, disaster relief. Platforms: READYFOR, For Good.
Hometown-tax / GCF (ふるさと納税型)
You direct your furusato-nozei donation to a specific municipal project and keep the tax deduction. Platform: Furusato Choice GCF.
Investment types — read the risk
Equity (株式投資型)
You invest in an unlisted startup and receive shares, hoping for an IPO or acquisition. Regulated, with annual caps. Total loss is possible. Platform: FUNDINNO.
Fund (ファンド型)
You invest in a specific business and receive revenue-linked distributions (often plus local goods). Returns track performance. Platform: セキュリテ.
Lending (融資型 / social lending)
You effectively lend money through an operator and earn fixed interest. Lower volatility, but borrower default and locked funds are real. Platform: Funds.
The three investment types are financial products. Never invest money you can't afford to lose, and read every risk disclosure.