＜prologue＞
I started a blog called “The Baby Boomer Generation’s Miscellaneous Blog”（Dankai-sedai no garakutatyou:団塊世代の我楽多（がらくた）帳） in July 2018, about a year before I fully retired. More than six years have passed since then, and the number of articles has increased considerably.
So, in order to make them accessible to people who don’t understand Japanese, I decided to translate my past articles into English and publish them.
It may sound a bit exaggerated, but I would like to make this my life’s work.
It should be noted that haiku and waka （Japanese short fixed form poems） are quite difficult to translate into English, so some parts are written in Japanese.
If you are interested in haiku or waka and would like to know more, please read introductory or specialized books on haiku or waka written in English.
I also write many articles about the Japanese language. I would be happy if these inspire more people to want to learn Japanese.
my blog’s URL:団塊世代の我楽多（がらくた）帳 | 団塊世代が雑学や面白い話を発信しています
my X’s URL:団塊世代の我楽多帳（@historia49）さん / X
Recently, we often hear the term “crowdfunding”. In this issue, we would like to take a look at this, as well as its advantages and disadvantages.
１．What is “Crowdfunding”?
Crowdfunding” is ”the act of an unspecified number of people providing financial resources or cooperation to other people or organizations, usually via the Internet.
Often confused with the “cloud” in “cloud computing,” this is a compound word for “crowd” and “funding.
Crowdfunding is a very effective way to start a new business or project, and is spreading at a tremendous rate around the world.
Specifically, they include “disaster prevention,” “fan support for artists,” “social and political movements,” “film production,” “free software development,” “venture capital investment,” and “loans to individuals, business companies, and projects.
There are three types of crowdfunding
(1) Investment type (fund type): Involves a monetary return
(2) Purchase type: Support is provided by purchasing some rights or goods offered by the project.
(3) Donation type: No monetary return
In Japan, a policy formulated by the second Abe Cabinet included a measure to utilize crowdfunding as one of the means to strengthen the supply of risk money.
A famous example from the past is the crowdfunding for the Statue of Liberty in the U.S. In 1884, when the Statue of Liberty Production Committee (U.S.) ran out of funds for the statue’s pedestal, Pulitzer Prize-winning newspaper publisher Pulitzer called on the American public in his newspaper, the New York World, to contribute funds for the pedestal. As a result, $100,000 was raised in six months. This is the result of about 125,000 people making many donations of $1 or less.
In Japan, the reconstruction of Osaka Castle tower (1931) was financed by donations from Osaka citizens, etc. When Hajime Seki, who became mayor of Osaka in 1928, proposed the reconstruction of Osaka Castle tower, there was a rush of applications for donations from citizens, and the target of 1.5 million yen (equivalent to 60 to 70 billion yen today) was raised in about six months. Of that amount, 250,000 yen was donated by Sumitomo Kichizaemon (1909-1993), the 16th general manager of the Sumitomo conglomerate. I think this is another example of crowdfunding.
Recently, the Mishima Emergency Medical Center in Osaka Prefecture, which is facing a serious shortage of doctors, announced that it will crowdfund 20 million yen to fund its operations, with a deadline of September 3 2019.
Also, Daigoji Temple in Kyoto, a World Heritage site, has launched a crowdfunding campaign to cover the cost of repairing damage caused by Typhoon No. 21 last September. The total damage at Daigoji Temple was 460 million yen, including about 3,000 fallen cedar and pine trees and damage to the Kiyotaki Palace of worship. 70% of the cost will be covered by government subsidies, but Daigoji Temple will also need about 140 million yen to cover the cost.
Therefore, they decided to raise funds through “Makuake,” the largest crowdfunding platform.
２．Advantages” of Crowdfunding
(1) A new business model that anyone can easily participate in because loans and investments can be made with small amounts.
(2) If you can invest in a good product, you can expect a large return.
３．Crowdfunding “Disadvantages”
(1) Many products are minor and have low liquidity.
(2) Even if the investment amount is raised, if the project does not go well, the investment money will be thrown away.
(3) If a person or organization solicits investment but has no intention of doing business, it is the same as being scammed.
